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Demand for money and shortages in Ethiopia

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  • Sterken, Elmer

    (Groningen University)

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 M1 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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File URL: http://irs.ub.rug.nl/ppn/241141648
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Bibliographic Info

Paper provided by University of Groningen, Centre for Development Studies (CDS) in its series CDS Research Reports with number 199909.

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Date of creation: 1999
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Handle: RePEc:dgr:rugcds:199909

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References

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  1. 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.
  2. Quintos, Carmela E & Phillips, Peter C B, 1993. "Parameter Constancy in Cointegrating Regressions," Empirical Economics, Springer, vol. 18(4), pages 675-706.
  3. repec:fth:oxesaf:95-5 is not listed on IDEAS
  4. Bennett T. McCallum & Marvin S. Goodfriend, 1986. "Theoretical analysis of the demand for money," Working Paper 86-03, Federal Reserve Bank of Richmond.
  5. Stefan Dercon & Lulseged Ayalew, 1995. "Smuggling and supply response: coffee in Ethiopia," CSAE Working Paper Series 1995-05, Centre for the Study of African Economies, University of Oxford.
  6. Gary G. Moser, 1994. "The Main Determinants of Inflation in Nigeria," IMF Working Papers 94/76, International Monetary Fund.
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Cited by:
  1. Loening, Josef L. & Durevall, Dick & Ayalew Birru, Yohannes, 2009. "Inflation Dynamics and Food Prices in an Agricultural Economy: The Case of Ethiopia," Working Papers in Economics 347, University of Gothenburg, Department of Economics.
  2. Durevall, Dick & Loening, Josef L. & Ayalew Birru, Yohannes, 2013. "Inflation dynamics and food prices in Ethiopia," Journal of Development Economics, Elsevier, vol. 104(C), pages 89-106.
  3. Kumar, Saten & Webber, Don J. & Fargher, Scott, 2013. "Money demand stability: A case study of Nigeria," Journal of Policy Modeling, Elsevier, vol. 35(6), pages 978-991.

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