Money Demand and Inflation in Madagascar

WPIEA2005236 Image
Price:  $15.00

Author/Editor: Koffie Ben Nassar
Release Date: © December, 2005
ISBN : 978-1-45186-255-3
Stock #: WPIEA2005236
Stock Status: On back-order

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This paper uses a two-sector model to estimate the relationship between prices, money, and the exchange rate in Madagascar during the period 1982-2004. The estimated model, using quarterly data, finds a stable long-run relationship among monetary aggregates, domestic prices, real income, and foreign interest rates. In addition, the error-correction model shows that changes in the monetary aggregates, the exchange rate, and foreign interest rates exert a significant impact on inflation. The results also suggest that a disequilibrium in the money market has a lasting impact on inflation. The paper concludes with policy recommendations.


Demand for money , Economic policy , Inflation , Monetary policy

More publications in this series: Working Papers

More publications by: Koffie Ben Nassar