• Login
    View Item 
    •   UNZA Repository Home
    • Theses and Dissertations
    • Humanities and Social Sciences
    • View Item
    •   UNZA Repository Home
    • Theses and Dissertations
    • Humanities and Social Sciences
    • View Item
    JavaScript is disabled for your browser. Some features of this site may not work without it.

    An Econometric Analysis of the Demand for money in Zambia 1965-1984

    Thumbnail
    View/Open
    david0001.PDF (4.088Mb)
    Date
    2011-04-08
    Author
    Musonda, David Tusheleni Chomba
    Type
    Thesis
    Language
    en
    Metadata
    Show full item record

    Abstract
    The past several decades have witnessed considerable empirical research on the demand for money function due to the vital role this function plays in macroeconomic analysis especially in regard to the formation and transmission of monetary policy. Consequently demand for money functions have been empirically estimated by many researchers for a number of developed and developing countries. For example Baumol (1952), Teigen (1964),Adekunle (1968), Bhattacharya (1974) and Darrat (1985).However, the demand for money function for Zambia has not been estimated before. It is the aim of this study,therefore, to estimate an appropriate demand for money function for Zambia using annual data over the period 1965 to 1984. One of the central issues that this study addresses is whether the Zambian demand for money relationship has shifted during the period of estimation. This is important because demand for money stability is a prerequisite for an effective monetary policy. As Darrat(1985) pointed out, to predict adequately the impact of money supply changes upon real output, interest rates, and prices the underlying demand for money relationship must be temporarily stable.cont/,The paper is organised as follows: Chapter I is a brief review of the Zambian Economy. While Chapter II is an overview of the literature on demand for money it also lays down the theoretical foundation of our study . In Chapter III we discuss the determinants of the aggregate demand for money in Zambia. Also included in this Chapter is the specification of an appropriate demand for money function for Zambia, the empirical results and the examination of the stability property of the demand for money function. The principal conclusions of this study are as follows:- 1. The appropriate empirical definition for money in Zambia is the M2; 2. The explanatory variables that significantly influence real demand for money in Zambia are real GDP (excluding subsistence agriculture) and real treasury bill rate; 3. Elasticity of real demand for money with respect to real GDP is greater than unity because of the upward bias induced by monetization; and 4. There is evidence that the estimated demand for money function is structurally unstable over time
    URI
    http://dspace.unza.zm/handle/123456789/308
    Subject
    Econometric
    Money
    Collections
    • Humanities and Social Sciences [807]

    DSpace software copyright © 2002-2016  DuraSpace
    UNZA homepage | UNZA Library | Contact Us | Send Feedback
    Theme by 
    Atmire NV
     

     

    Browse

    All of UNZA RepositoryCommunities & CollectionsBy Issue DateAuthorsTitlesSubjectsThis CollectionBy Issue DateAuthorsTitlesSubjects

    My Account

    LoginRegister

    Statistics

    View Usage Statistics

    DSpace software copyright © 2002-2016  DuraSpace
    UNZA homepage | UNZA Library | Contact Us | Send Feedback
    Theme by 
    Atmire NV