Joaquim José Martins Guilhoto – Universidade de São Paulo
To study the aggregate demand for narrow and broad money for the Brazilian economy in its most recent period, 1970 to 1983, a basic model was developed.
From this model, which is a restricted one, an unrestricted model was derived. Using information from both models, the unrestricted model was used to derive a common factor model as well as a first differences model. The best results are attained with the common factor model