Монгол улсын мөнгөний эрэлтийн тогтвортой байдал ба санхүүгийн иноваци

Abstract

This paper investigates the eects of real GDP, interest rate, exchange rate and financial innovations on the demand for money in Mongolia. The results indicate that real GDP showed the signicant positive impact on the demand for money, while interest rate and exchange rate were negatively related to the demand for money, also the impact of financial innovations on the demand for money was significantly high. In addition, by estimating CUSUMSQ test on both traditional and modern demand for money equation of Mongolia which excludes and includes nancial innovations respectively, the results show that they were stable in both cases during the observational period. Therefore, the study concludes that the money supply is the appropriate monetary policy instrument to be targeted by the Central Bank of Mongolia.