Zimbabwe : A Quest for a Nominal Anchor

Author/Editor:

Arto Kovanen

Publication Date:

July 1, 2004

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 study examines the appropriateness of alternative intermediate monetary policy targets for Zimbabwe in light of the stability of the demand for money and the information content of financial variables for predicting price level movements. Results of the study indicate that a well-defined long-run demand relation exists for currency in circulation, but not for other monetary aggregates. Currency in circulation has strong information content for predicting future price level movements. The information content of other financial variables, such as the exchange rate and interest rates, is weaker. Statistical relationships break down of the outset of high inflation.

Series:

Working Paper No. 04/130

Subject:

English

Publication Date:

July 1, 2004

ISBN/ISSN:

9781451855227/1018-5941

Stock No:

WPIEA1302004

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

41

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