Shortages, interest rates and money demand in Poland, 1969-1993

Applies a modified Keynesian money demand function to household money demand in Poland from 1969 to 1993. Co‐integration between the demand for broad money, income and shortage, despite the regime shifts during the 1980s and full liberalization of the Polish economy in the beginning of 1990. Compared to other studies, pays much attention to empirical evidence concerning portfolio arguments in the money demand function. Because the Polish economy has developed from a cash into a savings economy, over the sample period, observes an increase in price and interest rate elasticities of the demand for different financial assets