The Gambia: Demand for Broad Money and Implications for Monetary Policy Conduct
AbstractThis paper evaluates the demand for broad money (M2) in The Gambia for January 1988-June 2007. There appears to be a long-run relationship for demand for real M2, but the relationship is not stable. Exogenous output shocks, financial innovation, changes in income velocity, and inadequate data quality contribute to the instability. The authorities may need to apply the monetary targeting regime flexibly in the overall objective of preserving price stability. A possible option for The Gambia is to become an inflation targeter lite.
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Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 09/192.
Date of creation: 01 Sep 2009
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This paper has been announced in the following NEP Reports:
- NEP-AFR-2009-10-10 (Africa)
- NEP-ALL-2009-10-10 (All new papers)
- NEP-CBA-2009-10-10 (Central Banking)
- NEP-FDG-2009-10-10 (Financial Development & Growth)
- NEP-MAC-2009-10-10 (Macroeconomics)
- NEP-MON-2009-10-10 (Monetary Economics)
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