The Impact of Future Market on Money Demand in Iran
Indian Journal of Fundamental and Applied Life Sciences, Vol. 4, No. 3, 2014
7 Pages Posted: 5 Oct 2014
Date Written: September 30, 2014
The purpose of this study is modeling for money demand function in Iran, because the traditional Modeling was considered the money demand function only as a function of income and opportunity cost of currency holding. But, today according to innovations and financial initiatives and also economic uncertainty, the monetary changes cannot be explained through the simple relationship told by varies schools. Since, economic instabilities can do an important role in currency holding by economic agents and considering the impacts of such uncertainties, they create their own portfolio. But the importance of issue is that the money demand and its determinants play determining role in macroeconomic analysis and monetary policy making by the monetary authorities of a country. Generally, examining the amount of money demand in a country economic situation can be analyzed. So, in the present research using the mathematical techniques money demand function has been extract for Iran’s economy.
Keywords: Money Demand, Portfolio, Iran’s Economy, Future Market, Exchange
JEL Classification: E41, G13
Suggested Citation: Suggested Citation