How Useful Is Monetary Econometrics in Low-Income Countries? The Case of Money Demand and the Multipliers in Rwanda

 
Author/Editor: Hauner, David ; Di Bella, Gabriel ; International Monetary Fund. African Dept.
 
Publication Date: September 01, 2005
 
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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(s): Demand for money | Rwanda | Monetary policy | Economic models

Author's Keyword(s): Money demand | money multiplier | Rwanda
 
English
Publication Date: September 01, 2005
ISBN/ISSN: 1934-7073 Format: Paper
Stock No: WPIEA2005178 Pages: 23
Price:
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