Towards Abolishing the Rate of Interest in Contemporary
11 Pages Posted: 22 Jan 2018
Date Written: 1993
The purpose of this paper is to show that Metwally's conclusion suffers from misspecification biases. In the next section, I examine these potential biases and discuss possible ways to resolve them. I then outline in Section III an alternative money demand model and report the empirical results obtained for some Muslim economies. I analyze, in Section IV, the important issue of structural stability and present results from formal tests. Finally, I offer some concluding remarks in Section V.
Keywords: Abolishing, Interest
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