Description

This paper adopts the bounds testing procedure developed by Pesaran et al. (2001) to test the stability of the long-run money demand for Ghana. The results provide strong evidence for the presence of a stable, well-identified long-run money demand during a period of substantial changes in the financial markets. The empirical evidence points to complex dynamics between money demand and its determinants while suggesting that deviations from the equilibrium are rather short-lived.1

Taxonomy

Capital markets , Demand for money , Economic policy , Financial institutions and markets , Monetary policy

More publications in this series: Working Papers

More publications by: Jihad Dagher ; Arto Kovanen