How Useful Is Monetary Econometrics in Low-Income Countries? The Case of Money Demand and the Multipliers in Rwanda

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Author/Editor: Gabriel Di Bella, David Hauner
Release Date: © September, 2005
ISBN : 978-1-45186-197-6
Stock #: WPIEA2005178
English
Stock Status: Available

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Description

This paper revisits the usefulness of econometric monetary analysis in low-income countries in a case study on Rwanda, an interesting case given its floating exchange rate and reliance on indirect monetary policy instruments on the one hand, and its somewhat typical data and institutional shortcomings on the other hand. The findings are generally encouraging for the use of econometric models for monetary analysis in low-income countries. Notwithstanding substantial qualifications, time series and structural models of the money multiplier and money demand yield results that are statistically and economically reasonable enough to usefully inform policymaking.

Taxonomy

Demand for money , Economic policy , Monetary policy




More publications in this series: Working Papers


More publications by: Gabriel Di Bella ; David Hauner