Zimbabwe: A Quest for a Nominal Anchor

WPIEA1302004 Image
Price:  $15.00

Author/Editor: Arto Kovanen
Release Date: © July, 2004
ISBN : 978-1-45185-522-7
Stock #: WPIEA1302004
Stock Status: On back-order

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This study examines the appropriateness of alternative intermediate monetary policy targets for Zimbabwe in light of the stability of the demand for money and the information content of financial variables for predicting price level movements. Results of the study indicate that a well-defined long-run demand relation exists for currency in circulation, but not for other monetary aggregates. Currency in circulation has strong information content for predicting future price level movements. The information content of other financial variables, such as the exchange rate and interest rates, is weaker. Statistical relationships break down of the outset of high inflation.


Demand for money , Economic policy , Inflation , Monetary policy

More publications in this series: Working Papers

More publications by: Arto Kovanen