Financial liberalisation and currency demand in Zambia
Financial liberalisation and currency demand in Zambia
This paper examines the impact of exchange rate and financial sector liberalisation measures implemented in the early 1990s on the private sector's demand for base money in Zambia. Using time-series data I show how the removal of controls on asset markets led to a permanent shift in the demand for narrow money. Linked with an increase in forecast volatility, this structural break appears to have undermined the efficacy of money-based stabilisation efforts in Zambia.
CITATION: Adam, C.. Financial liberalisation and currency demand in Zambia . Oxford : Oxford University Press , 1999. Journal of African Economies Volume 8 issue 3 Oct 1999 pp. 268-306 - Available at: https://library.au.int/frfinancial-liberalisation-and-currency-demand-zambia