Inflation uncertainty, money demand, and monetary deregulation: Evidence from a univariate ARCH model and cointegration tests

This study has extended a money demand equation to include uncertainty of inflation. It is proved via cointegration techniques that inflation uncertainty in Greece is described well by an Autoregressive Conditional Heteroskedasticity (ARCH) process over the period 1975-93, following the deregulation of the monetary system in 1988 and in terms of capturing money demand structural instabilities.N/