For a selected country and using quarterly data, specify and estimate the money demand function. Check and correct for shifts in this function during the period of your study.

Try the following variations of the independent variables:

(i) Expected income and permanent income for the scale variable.

(ii) Two different interest rates, one short-term and the other medium-term.

(iii) A proxy for the expected change in the exchange rate.

(iv) Also, do your estimations using the following techniques:

(a) least squares estimation, with a first-order PAM;

(b) cointegration with an error-correction model.

(v) Discuss your choice of the functional form of the money demand function and your choice of the variables and the econometric techniques used, as well as the data and econometric problems you encountered.

(vi) Discuss your results, their plausibility and consistency with the theory, and their robustness.