Money fluctuations in Madagascar driving inflation rates to new highs!
The article examines how money, prices, and exchange rates in Madagascar are related from 1982 to 2004. By analyzing quarterly data, the researchers found that changes in money supply, exchange rates, and foreign interest rates have a big impact on inflation. They also discovered that imbalances in the money market can lead to lasting effects on inflation. The study offers suggestions for policy based on these findings.