Zimbabwe A Quest for a Nominal Anchor

This study examines the appropriateness of alternative intermediate monetary policy targets for Zimbabwe in light of the stability of the demand for money and the information content of financial variables for predicting price level movements. Results of the study indicate that a well-defined long-r...

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Bibliographic Details
Main Author: Kovanen, Arto
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2004
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a Zimbabwe  |b A Quest for a Nominal Anchor  |c Arto Kovanen 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2004 
300 |a 41 pages 
651 4 |a Zimbabwe 
653 |a Payment Systems 
653 |a Regimes 
653 |a Deflation 
653 |a Intangible Capital 
653 |a National accounts 
653 |a Money 
653 |a Foreign Exchange 
653 |a Standards 
653 |a Depreciation 
653 |a Demand for Money 
653 |a Policy Objectives 
653 |a Policy Coordination 
653 |a Currencies 
653 |a Demand for money 
653 |a Macroeconomics 
653 |a Capacity 
653 |a Capital 
653 |a Foreign exchange 
653 |a Government and the Monetary System 
653 |a Inflation 
653 |a Investment 
653 |a Monetary economics 
653 |a Policy Designs and Consistency 
653 |a Monetary Policy, Central Banking, and the Supply of Money and Credit: General 
653 |a Currency 
653 |a Money supply 
653 |a Price Level 
653 |a Monetary base 
653 |a Saving and investment 
653 |a Investments: General 
653 |a Monetary Systems 
653 |a Prices 
653 |a Exchange rates 
653 |a Money and Monetary Policy 
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490 0 |a IMF Working Papers 
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082 0 |a 330 
520 |a This study examines the appropriateness of alternative intermediate monetary policy targets for Zimbabwe in light of the stability of the demand for money and the information content of financial variables for predicting price level movements. Results of the study indicate that a well-defined long-run demand relation exists for currency in circulation, but not for other monetary aggregates. Currency in circulation has strong information content for predicting future price level movements. The information content of other financial variables, such as the exchange rate and interest rates, is weaker. Statistical relationships break down of the outset of high inflation