Paper

Money Aggregate

Determinants

Estimation Method

Data Employed

Income Elasticity

Effect of Interest Rate

Currency Substitution Effect?

Stability

Bahmani- Oskooee and Wang (2007)

M1/M2

Y, R, R*, EX

ARDL

1983Q1 to 2002Q4

1.281/1.691

Negative/not significant

No

Stable/Not Stable

Lee and Chien (2008)

M1/M2

Y, R

Johansen cointegration

1977-2002

1.013/1.110

Negative

N.A.

Structure break at 1979, 1983, 1988, 1992-1993

Bahmani- Oskooee et al. (2012)

M2

Y, R, π, EX, output volatility, money supply volatility

Bounds testing

1983Q1 to 2010Q2

1.111

Negative

No

Stable

Lee and Chang (2012)

M1/M2

Y, R

Bounds testing

1977-2006

0.884/0.915

Negative

N.A.

Stable/Stable

Bahmani- Oskooee et al. (2016)

M2

Y, π, EX/EX asymmetric effect

ARDL

1996Q1 to 2015Q1

1.458/1.114

NA

No

Stable/Stable

Wang (2017)

M1/M2

Y, R, R*, EX

Or Y, π, EX

ARDL

1999Q1 to 2008Q1

1.47/1.04

Mixed

Or NA

No for M1/Yes for M2

Mixed

Bahmani- Oskooee and Aftab (2020)

M2

Y, R, π, EX, policy uncertainty/policy uncertainty asymmetric effect

ARDL

Jan 2010 to May 2020

0.054/0.024

Not significant

Yes

Stable/Stable

Chen et al. (2021)

M2

Y, R, π

VECM/VAR

1981Q1 to 1992Q4;

1993Q1 to 2018 Q3

1.507/1.511;

1.460/1.461

Negative/Negative;

Positive/Positive

N.A.

Structure break at 1992

Liu et al. (2022)

M2

Y, R, consumer price, housing price

FMOLS

N.A.

Varies from 1.13 to 1.74

Negative

N.A.

Structure break at 1992-1995; 2007-2008; 2010