## Money Demand and Inflation in Madagascar

_IMF Working Papers, December 1, 2005_

## Source details

**Canonical URL:** [Money Demand and Inflation in Madagascar](https://www.imf.org/en/publications/wp/issues/2016/12/31/money-demand-and-inflation-in-madagascar-18746)

## Other formats

- [Markdown version](/en/publications/wp/issues/2016/12/31/money-demand-and-inflation-in-madagascar-18746/index.md)
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## Bibliographic details
- Authors: Koffie Ben Nassar
- Published: December 1, 2005
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451862553.001

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### Research scope and data
- Period analyzed: 1982-2004.
- Data frequency: quarterly data.
- Model: two-sector model and an error-correction model.
- Author: Koffie Ben Nassar.
- Series and identifiers:
  - Working Paper No.: 2005/236
  - Volume: 2005
  - Issue: 236
  - Pages: 25
  - DOI: https://doi.org/10.5089/9781451862553.001
  - Stock No: WPIEA2005236
  - ISBN: 9781451862553
  - ISSN: 1018-5941

### Key empirical findings
- The estimated model finds a stable long-run relationship among:
  - monetary aggregates,
  - domestic prices,
  - real income, and
  - foreign interest rates.
- The error-correction model shows that changes in the following exert a significant impact on inflation:
  - monetary aggregates,
  - the exchange rate,
  - foreign interest rates.
- A disequilibrium in the money market has a lasting impact on inflation.

### Policy implications and conclusions
- The paper concludes with policy recommendations aimed at addressing the linkages between money, the exchange rate, and inflation.
- Subject areas relevant to policy discussions include:
  - Demand for money,
  - Exchange rate arrangements,
  - Exchange rates,
  - Inflation,
  - Monetary base.

### Keywords and topical focus
- Keywords: real GDP, WP

*Source: Koffie Ben Nassar, "Money Demand and Inflation in Madagascar", IMF Working Papers 2005, 236 (2005).*

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/money-demand-and-inflation-in-madagascar-18746_