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The demand for money in Angola

Author

Listed:
  • C. P. Barros

    (ISEG – Lisbon School of Economics and Management; ULisboa and CEsA - Research Centre on African, Asian and Latin American Studies)

  • João Ricardo Faria

    (University of Texas at El Paso)

  • Luis A. Gil-Alana

    (University of Navarra)

Abstract

This paper analyses Angola’s long-run and short-run money demand, identifying its determinants using data from January 2000 to August 2013. A theoretical model is presented and the estimated results show that money mass, income, inflation, exchange rate and interest rates are cointegrated, revealing a long-run equilibrium relationship between these variables. The cointegration relationship is unstable in the short run. The results are in line with the monetary policy undertaken by the Central Bank of Angola and also in line with published papers on money demand. Policy implication is derived.

Suggested Citation

  • C. P. Barros & João Ricardo Faria & Luis A. Gil-Alana, 2017. "The demand for money in Angola," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 41(2), pages 408-420, April.
    • Handle: RePEc:spr:jecfin:v:41:y:2017:i:2:d:10.1007_s12197-016-9358-6
    DOI: 10.1007/s12197-016-9358-6
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    More about this item

    Keywords

    Angola; Money demand; Long run; Short run;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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