Estimating the Demand for Money in Namibia

No study has been undertaken for the Namibian economy focusing on the demand for money. Sylvanus I. Ikhide and Kava Katjomuise estimate the money demand function from 1990-98 using cointegration and error correction models. The paper concludes that real money balances, income and interest rates have stable relationships in the economy, and that income and interest rates are important determinants of money holding in the economy. These findings contradict the previously held view that interest

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