On the Stability of Money Demand in Ghana: A Bounds Testing Approach

Author/Editor:

Arto Kovanen ; Jihad Dagher

Publication Date:

November 1, 2011

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

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

Series:

Working Paper No. 2011/273

Subject:

Bank deposits Demand for money Financial services Foreign exchange Monetary base Money National accounts Nominal effective exchange rate Personal income

English

Publication Date:

November 1, 2011

ISBN/ISSN:

9781463925284/1018-5941

Stock No:

WPIEA2011273

Pages:

18

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