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Demand for money and shortages in Ethiopia

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Author Info
Elmer Sterken

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Abstract

The paper discusses the long-run monetary conditions in Ethiopia in the last three decades. These decades can be characterized by large political changes, leading to shocks on income and population growth, and two serious periods of drought. Both affected inflation and real demand for M 1 through shortages of food. Shortage due to drops in rainfall might have long-run monetary consequences. Despite regime shifts we find support for stability of Ethiopian narrow money demand.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Applied Economics Letters.

Volume (Year): 11 (2004)
Issue (Month): 12 (October)
Pages: 759-769
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Handle: RePEc:taf:apeclt:v:11:y:2004:i:12:p:759-769

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Dercon, Stefan & Ayalew, Lulseged, 1995. "Smuggling and supply response: Coffee in Ethiopia," World Development, Elsevier, vol. 23(10), pages 1795-1813, October. [Downloadable!] (restricted)
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  2. Gary G. Moser, 1994. "The Main Determinants of Inflation in Nigeria," IMF Working Papers 94/76, International Monetary Fund.
  3. Bennett T. McCallum & Marvin S. Goodfriend, 1986. "Theoretical analysis of the demand for money," Working Paper 86-03, Federal Reserve Bank of Richmond. [Downloadable!]
  4. Quintos, Carmela E & Phillips, Peter C B, 1993. "Parameter Constancy in Cointegrating Regressions," Empirical Economics, Springer, vol. 18(4), pages 675-706.
  5. Bennett T. McCallum & Marvin S. Goodfriend, 1987. "Money: Theoretical Analysis of the Demand for Money," NBER Working Papers 2157, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  1. Loening, Josef L. & Durevall, Dick & Birru, Yohannes A., 2009. "Inflation dynamics and food prices in an agricultural economy : the case of Ethiopia," Policy Research Working Paper Series 4969, The World Bank. [Downloadable!]
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