Martinez Peria, Maria Soledad2015-07-312015-07-312000-03https://hdl.handle.net/10986/22356The author empirically investigates the monetary impact of banking crises in Colombia, Chile, Denmark, Japan, Kenya, Malaysia, and Uruguay. She uses co-integration analysis and error correction modeling to research: 1) Whether money demand stability is threatened by banking crises. 2) Whether crises bring about structural breaks in the relationship between monetary indicators and prices. Overall, she finds no systematic evidence that banking crises cause money demand instability. Nor do the results consistently support the notion that the relationship between monetary indicators and prices undergoes structural breaks during crises. However, although individual coefficients in price equations do not seem to be severely affected by crises, crises can sometimes give rise to variance instability in price or inflation equations.en-USCC BY 3.0 IGOBANKING CRISESCAPITAL MARKETSCENTRAL BANKCENTRAL BANKSCURRENCYDEMAND FOR MONEYDEREGULATIONDEUTSCHE MARKDEVELOPED COUNTRIESECONOMIC THEORYELASTICITIESELASTICITYEMPIRICAL ANALYSISEMPIRICAL EVIDENCEENDOGENOUS VARIABLESEQUATIONSEQUILIBRIUMEXCHANGE RATEEXCHANGE RATE CHANGESEXCHANGE RATESFINANCIAL INNOVATIONGOVERNMENT BONDSGROWTH RATEINCOMEINFLATIONINFLATION RATEINTEREST RATEINTEREST RATESLABOR MARKETSM2MONETARY AGGREGATESMONETARY AUTHORITIESMONETARY INDICATORSMONETARY POLICYMONEY DEMANDMONEY DEMAND FUNCTIONSMONEY DEMAND STABILITYMULTIPLIERSOUTPUTPRICE INFLATIONPRICE STABILITYPURCHASING POWERPURCHASING POWER PARITYREAL WAGESSTOCK PRICEST-BILLSUNEMPLOYMENTUNEMPLOYMENT RATEVOLATILITYWAGESWorking PaperWorld Bank10.1596/1813-9450-2305