{
  "title": "Monetization in Low- and Middle-Income Countries",
  "publication": "IMF Working Papers, June 1, 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.",
  "sections": [
    {
      "heading": "Overview and research question",
      "content": "- Examines the degree of an economy’s monetization and its implications for economic growth.\n- Defines monetization as the ratio of broad money to nominal GDP.\n- Investigates drivers of monetization in low- to middle-income countries and policy implications."
    },
    {
      "heading": "Key findings",
      "content": "- Monetization (broad money to nominal GDP) in low- to middle-income countries is significantly correlated with:\n  - per-capita GDP,\n  - real interest rates,\n  - financial sector reform.\n- Episodes of financial crises, the conduct of monetary policy, and financial sector reform can affect the degree of monetization.\n- Maintaining an upward momentum in monetization is identified as an important policy objective, particularly for low-income countries."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Monetary and financial sector policies should be conducive to enhancing monetization.\n- Financial sector reform is highlighted as a key channel for increasing monetization.\n- Preservation of favorable real interest rate conditions can support monetization progress.\n\n---\n\n Content in this bundle\n\n- 5. Main Results: Multivariate Regressions\n  - 5. Main Results: Multivariate Regressions (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - 5. Main Results: Multivariate Regressions (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/monetization-in-low-and-middle-income-countries-26010"
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    "[Markdown version](/en/publications/wp/issues/2016/12/31/monetization-in-low-and-middle-income-countries-26010/index.md)",
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    "Authors: Noriaki Kinoshita, Cameron McLoughlin",
    "Published: June 1, 2012",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781475504651.001",
    "Examines the degree of an economy’s monetization and its implications for economic growth.",
    "Defines monetization as the ratio of broad money to nominal GDP.",
    "Investigates drivers of monetization in low- to middle-income countries and policy implications.",
    "Monetization (broad money to nominal GDP) in low- to middle-income countries is significantly correlated with:",
    "Episodes of financial crises, the conduct of monetary policy, and financial sector reform can affect the degree of monetization.",
    "Maintaining an upward momentum in monetization is identified as an important policy objective, particularly for low-income countries.",
    "Monetary and financial sector policies should be conducive to enhancing monetization.",
    "Financial sector reform is highlighted as a key channel for increasing monetization.",
    "Preservation of favorable real interest rate conditions can support monetization progress.",
    "**5. Main Results: Multivariate Regressions**"
  ],
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