Monetization in Low- and Middle-Income Countries

 
Author/Editor: McLoughlin, Cameron ; Kinoshita, Noriaki
 
Publication Date: June 01, 2012
 
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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 | Financial sector | Low-income developing countries | Monetary policy

Author's Keyword(s): Monetization | Financial Sector Reform | Low- and Middle-Income Countries
 
English
Publication Date: June 01, 2012
Format: Paper
Stock No: WPIEA2012160 Pages: 22
Price:
US$18.00 (Academic Rate:
US$18.00 )
 
 
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