01867cas a2200277 a 4500 AALejournalIMF008478 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451974218 1018-5941 BD-DhAAL BD-DhAAL De Gregorio, Jose. The Demand for Money in Developing Countries : Assessing the Role of Financial innovation / Jose De Gregorio, Peter Wickham, Patricio Arrau, Carmen Reinhart. Washington, D.C. : International Monetary Fund, 1991. 1 online resource (40 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Traditional specifications of money demand have been commonly plagued by persistent overprediction, implausible parameter estimates, and highly autocorrelated errors. This paper argues that some of those problems stem from the failure to account for the impact of financial innovation. We estimate money demand for ten developing countries employing various proxies for the innovation process and provide an assessment of the relative importance of this variable. We find that financial innovation plays an important role in determining money demand and its fluctuations, and that the importance of this role increases with the rate of inflation. Mode of access: Internet Arrau, Patricio. Reinhart, Carmen. Wickham, Peter. IMF Working Papers; Working Paper ; No. 1991/045 Full text available on IMF http://elibrary.imf.org/view/journals/001/1991/045/001.1991.issue-045-en.xml IMF e-Library