Template-Type: ReDIF-Paper 1.0 Author-Name:Elena Sinelnikova-Muryleva Author-Name-First: Elena Author-Name-Last: Sinelnikova-Muryleva Author-Workplace-Name: Gaidar Institute for Economic Policy Title: ESTIMATING THE DEMAND FOR MONEY IN THE RUSSIAN ECONOMY FACTORING IN THE DEVELOPMENT OF BANKING TECHNOLOGIES Abstract: This paper presents an attempt to find a stable cash demand function in Russia in the period of 2000 thru 2010. The authors assume that the demand for the �0 monetary aggregate in Russia has recently been substantially influenced by the advancement of payment innovations, namely bank payment cards. Traditional money demand models can�t explain how innovations influence the demand for money. Therefore, this paper presents a modern monetary theory approach towards the �money� issue which can explain the existence of a wide range of payment instruments, i.e., innovations. Additionally, the paper presents the results of estimations of equations of the demand for the �0 monetary aggregate factoring in indicators of payment innovations. Length: 13 pages Creation-Date: 2013 Revision-Date: 2013 Classification-JEL: E5 Keywords: Russian economy, money demand, banking technologies File-URL: https://www.iep.ru/files/RePEc/gai/wpaper/0086Sinelnikova-Muryleva.pdf File-Format: Application/pdf File-Function: Revised version, 2013 Handle: RePEc:gai:wpaper:0086