Demand for Money in Mozambique Was There a Structural Break?

The paper provides estimates of an error-correction model of the demand for narrow money (M1) and broad money (M2) in Mozambique. In addition, it assesses whether the rapid growth in money balances during 1996–97 represents a structural break or can be associated with the rapidly expanding economic...

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Bibliographic Details
Main Author: Piñón-Farah, Marco
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 1998
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a Demand for Money in Mozambique  |b Was There a Structural Break?  |c Marco Piñón-Farah 
260 |a Washington, D.C.  |b International Monetary Fund  |c 1998 
300 |a 21 pages 
651 4 |a Mozambique, Republic of 
653 |a Price indexes 
653 |a Inflation 
653 |a Monetary economics 
653 |a Deflation 
653 |a Economic statistics 
653 |a Consumer price indexes 
653 |a Currency 
653 |a General Financial Markets: General (includes Measurement and Data) 
653 |a Money 
653 |a Price Level 
653 |a Foreign Exchange 
653 |a Demand for Money 
653 |a Demand for money 
653 |a Prices 
653 |a Macroeconomics 
653 |a Economic and financial statistics 
653 |a Exchange rates 
653 |a Statistics 
653 |a Econometrics & economic statistics 
653 |a Money and Monetary Policy 
653 |a Foreign exchange 
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520 |a The paper provides estimates of an error-correction model of the demand for narrow money (M1) and broad money (M2) in Mozambique. In addition, it assesses whether the rapid growth in money balances during 1996–97 represents a structural break or can be associated with the rapidly expanding economic activity and lower opportunity costs of holding money. In contrast with several studies of economies at a similar level of development as Mozambique, the paper obtains statistically significant coefficients for both financial and real explanatory variables. In this connection, it successfully includes the yield of foreign instruments (expressed in local currency) as one of the key explanatory variables