IDEAS home Printed from https://ideas.repec.org/a/afe/journl/v1y1992i2p59-76.html
   My bibliography  Save this article

The Demand for Money in Sub-Saharan Africa: Evidence from Sierra Leone

Author

Listed:
  • Kelfala M. Kallon

    (Gettyburg College)

Abstract

This paper examines the demand for money in Sierra Leone. Alternative hypotheses about the short-term adjustment process were tested, and the empirical evidence was inconclusive. In terms of the magnitude and level of significance of the estimated coefficients, the evidence seems to support the real adjustment hypothesis. On the other hand, when ex-post forecasting ability is the model-selection criterion, the nominal adjustment hypotheses has a slight edge over its real adjustment counterpart. Additionally, the long-run income elasticity of money demand was found to be high, as expected in economies with underdeveloped financial markets. Also, the evidence indicates that the domestic interest rate, when modified to take the peculiarities of financial markets in Sub-Saharan African economies, plays a significant role in the demand for money in Sierra Leone. On the other hand, the foreign interest rate was found to have no significant effect on the demand for money in Sierra Leone.

Suggested Citation

  • Kelfala M. Kallon, 1992. "The Demand for Money in Sub-Saharan Africa: Evidence from Sierra Leone," Journal of African Development, African Finance and Economic Association (AFEA), vol. 1(2), pages 59-76.
    • Handle: RePEc:afe:journl:v:1:y:1992:i:2:p:59-76
    as

    Download full text from publisher

    File URL: http://www.afeawpapers.org/RePEc/afe/afe-journl/wp-content/uploads/2014/07/JAD_vol1_N2_Chp4.pdf
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:afe:journl:v:1:y:1992:i:2:p:59-76. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Christian Nsiah (email available below). General contact details of provider: https://edirc.repec.org/data/afeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.