The Gambia: Demand for Broad Money and Implications for Monetary Policy Conduct

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Author/Editor: Subramanian S. Sriram
Release Date: © September, 2009
ISBN : 978-1-45187-339-9
Stock #: WPIEA2009192
English
Stock Status: Available

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Description

This paper evaluates the demand for broad money (M2) in The Gambia for January 1988-June 2007. There appears to be a long-run relationship for demand for real M2, but the relationship is not stable. Exogenous output shocks, financial innovation, changes in income velocity, and inadequate data quality contribute to the instability. The authorities may need to apply the monetary targeting regime flexibly in the overall objective of preserving price stability. A possible option for The Gambia is to become an inflation targeter lite.

Taxonomy

Demand for money , Economic policy , Monetary policy




More publications in this series: Working Papers


More publications by: Subramanian S. Sriram