Publicação
Currency substitution and inflation forecast in Angola: comparison of alternative monetary aggregates
| Resumo: | The main purpose of this paper is to identify a stable money demand function for Angola. Using monthly data from 2012:01 until 2019:01, we run a Vector Error Correction model, for the long-run relationships experimenting with different monetary aggregates. Then, an Auto Regressive Distributed Lag model is used to access the forecasting power of the corresponding excess liquidities regarding the inflation rate. The results indicate that there is currency substitution in Angola, but instability of money demand can be overcome by using broader monetary aggregates that include foreign currency deposits. |
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| Autores principais: | Rocha, Ana Beatriz Santos Ferreira |
| Assunto: | Money Demand Angola Currency Substitution Inflation |
| Ano: | 2020 |
| País: | Portugal |
| Tipo de documento: | dissertação de mestrado |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Universidade de Aveiro |
| Idioma: | inglês |
| Origem: | RIA - Repositório Institucional da Universidade de Aveiro |
| Resumo: | The main purpose of this paper is to identify a stable money demand function for Angola. Using monthly data from 2012:01 until 2019:01, we run a Vector Error Correction model, for the long-run relationships experimenting with different monetary aggregates. Then, an Auto Regressive Distributed Lag model is used to access the forecasting power of the corresponding excess liquidities regarding the inflation rate. The results indicate that there is currency substitution in Angola, but instability of money demand can be overcome by using broader monetary aggregates that include foreign currency deposits. |
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