Suppressed Inflation and Money Demand in Zimbabwe / Sònia Muñoz.

Format:

Book

Government document

Author/Creator:

Muñoz, Sònia.

Contributor:

International Monetary Fund. Research Department.

Series:

IMF Working Papers; Working Paper ; No. 2006/015

IMF Working Papers

Language:

English

Subjects (All):

Demand for money--Zimbabwe.

Demand for money.

Inflation (Finance)--Zimbabwe.

Inflation (Finance).

Physical Description:

1 online resource (20 p.)

Edition:

1st ed.

Place of Publication:

Washington, D.C. : International Monetary Fund, 2006.

Language Note:

English

Summary:

The paper investigates the divergence between inflation and monetary expansion in Zimbabwe since late 2003. The substantial decline in velocity and increasing levels of real money balances during 2004 are at odds with a record of inflation closely tracking the growth rates of monetary aggregates in the past. Possible explanations for the divergence include an unstable demand for money, a sudden shift in the underlying demand for real balances due to a sharp change in an explanatory variable, and a structural break or aberration in a normally stable money demand relation reflecting some unexplained factor such as repressed inflation (given administered prices) or measurement errors in the consumer price index. The results of the study point to the last possibility as the most likely explanation.

Contents:

""Contents""; ""I. INTRODUCTION""; ""II. STYLIZED FACTS""; ""III. ESTIMATING A MONEY DEMAND EQUATION""; ""IV. INFLUENCE OF EXOGENOUS FACTORS ON VELOCITY MOVEMENTS""; ""V. CONCLUSION""; ""REFERENCES""

Notes:

"January 2006."

Includes bibliographical references.

Description based on print version record.

ISBN:

9786613830289

9781462387151

1462387152

9781452777399

145277739X

9781283517836

1283517833

9781451908114

1451908113

OCLC:

694141084