Money Demand and Stabilisation in Zimbabwe

Carolyn Jenkins

Journal of African Economies, 1999, vol. 8, issue 3, 386-421

Abstract: During the 1980s the potential instability of Zimbabwe's unsustainably high budget deficit was reduced by the smooth transfer of resources from the private to the public sector via the domestic financial system, which affected private demand for financial assets. Import, exchange and price controls operated to suppress private-sector demand. This led to the build-up of private savings, which was on-lent to the government via liquid asset requirements and the crowding out of domestic deposits in the nonbank private sector's portfolio by government securities. This article uses Johansen's procedure for analysing cointegration to model the demand for real money balances in Zimbabwe, in order to determine the extent to which these constraints on the domestic asset market suppressed the demand for money in Zimbabwe. Copyright 1999 by Oxford University Press.

Date: 1999
References: Add references at CitEc
Citations: View citations in EconPapers (8)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:jafrec:v:8:y:1999:i:3:p:386-421

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

Journal of African Economies is currently edited by Francis Teal

More articles in Journal of African Economies from Centre for the Study of African Economies Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().