Economic Reform and the Stability of the Demand for Money in Tanzania
This paper investigates whether there exists a stationary long-run equilibrium relationship between real money balances, real income, inflation and expected depreciation in Tanzania which can be identified as a money demand function. As the institutional and regulatory framework in Tanzania has undergone a series of changes since economic reforms began in the mid-1980s, shifts in parameters over time might have occurred, causing instability in the money demand function. Using Johansen's maximum likelihood and dynamic modelling procedure, the paper finds equilibrium in the long run and a stable money demand function. These findings imply that, even though economic liberalization and relaxation of controls could have induced instability in the money demand function as conjectured in the literature, such instability was not significant enough to inhibit the estimation of short- and long-run demand for money. Copyright 1999 by Oxford University Press.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): 8 (1999)
Issue (Month): 3 (October)
|Contact details of provider:|| Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK|
Phone: +44-(0)1865 271084
Fax: 01865 267 985
Web page: http://www.jae.oupjournals.org/
More information through EDIRC
|Order Information:||Web: http://www.oup.co.uk/journals|
When requesting a correction, please mention this item's handle: RePEc:oup:jafrec:v:8:y:1999:i:3:p:307-44. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.