The extension of currency substitution into the near-money framework: A case for Canada.

摘要

This thesis attempts to estimate the nearness of near monies in Canada including foreign monetary assets, i.e. U.S. dollars. The results enable us to make a statement about how substitutable or complementable U.S. dollars are in the Canadian private asset portfolio. This brought the event of currency substitution into the near money framework and we found U.S. dollars are far from good substitutes for Canadian narrowly defined money. Our analysis further provide a reconciliation of results obtained by Bordo and Choudhari (1982) and Husted (1984).