Monetization in Low- and Middle-Income Countries

Author/Editor: Noriaki Kinoshita ; Cameron McLoughlin
Publication Date: June 01, 2012
Electronic Access: Free Full text (PDF file size is 1,006KB).
Use the free Adobe Acrobat Reader to view this PDF file

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: The degree of an economy’s monetization, which has an important implication on economic growth, can be affected by the conduct of monetary policy, financial sector reform, and episodes of financial crises. The paper finds that monetization--measured by the ratio of broad money to nominal GDP-- in low- to middle-income countries is significantly correlated with per-capita GDP, real interest rates, and financial sector reform. It suggests that maintaining an upward momentum in monetization can be an important policy objective, particularly for low-income countries, and that monetary and financial sector policies need to be conducive to enhancing monetization.
Series: Working Paper No. 12/160
Subject(s): Bank reforms | Economic growth | Economic models | Low-income developing countries

Author's Keyword(s): Monetization | Financial Sector Reform | Low- and Middle-Income Countries
Publication Date: June 01, 2012
ISBN/ISSN: 9781475504651/1018-5941 Format: Paper
Stock No: WPIEA2012160 Pages: 23
US$18.00 (Academic Rate:
US$18.00 )
Please address any questions about this title to