How Useful is Monetary Econometrics in Low-Income Countries? T+L3104he Case of Money Demand and the Multipliers in Rwanda

Author/Editor:

David Hauner ; Gabriel Di Bella

Publication Date:

September 1, 2005

Electronic Access:

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Summary:

This paper revisits the usefulness of econometric monetary analysis in low-income countries in a case study on Rwanda, an interesting case given its floating exchange rate and reliance on indirect monetary policy instruments on the one hand, and its somewhat typical data and institutional shortcomings on the other hand. The findings are generally encouraging for the use of econometric models for monetary analysis in low-income countries. Notwithstanding substantial qualifications, time series and structural models of the money multiplier and money demand yield results that are statistically and economically reasonable enough to usefully inform policymaking.

Series:

Working Paper No. 05/178

Subject:

English

Publication Date:

September 1, 2005

ISBN/ISSN:

9781451861976/1018-5941

Stock No:

WPIEA2005178

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

23

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