Madagascar's Money Market Impacting Inflation: Policy Recommendations Revealed
The article examines how money, prices, and exchange rates in Madagascar are related from 1982 to 2004. By analyzing quarterly data, the researchers found a stable connection between money, prices, income, and foreign interest rates. They also discovered that changes in money, exchange rates, and foreign interest rates have a big impact on inflation. The study suggests that when the money market is out of balance, it can lead to lasting inflation.