New Zealand's Money Demand Linked to Real Income and Inflation Rates
The study looked at what factors influence how much money people in New Zealand want to hold in the long term. They used a method called cointegration and data from 1988 to 2002. The findings show that the demand for money in New Zealand is connected to real income, the difference in interest rates between money and other assets, expected inflation rates, and the value of the New Zealand dollar compared to other currencies.