RODRIGUEZ, M.C. and TURNER, P., 2003. Currency substitution and the demand for money in Mexico. Applied Economics Letters, 10, pp.59-62
Demand functions for broad money and foreign currency deposits are estimated using quarterly Mexican data for the period 1978:1 to 2000:4. Significant evidence is found for currency substitution in the broad money equation. While the demand function for foreign currency deposits is harder to interpret, significant evidence ofsubstitut ion between domestic money balances and US$ deposits is found.