Money Multiplier in a fixed exchange regime framework

Even though it seems I had lost interest on my blog, it was my master’s dissertation fault…which you can find here, with the abstract below:

“This study provides a new empirical approach about the money multiplier process, using monthly monetary data from Angola since January 2012 until June 2018. The use of an ARDL model allows to test the long run relationship of both the money multiplier and the reserve to deposit ratio and consider the short-term adjustments from monetary shocks. The analysis focuses mainly on the level of concentration of the banking system, the degree of liquidity of banks’ liabilities and the interest rate as determinants of the long-term ratios. Other country specific factors such as the foreign exchange rate spread and the non-performing loans ratio have been included to the analysis, to consider Angola’s macroeconomic challenges. It was concluded that according to monetary theory, both the interest rate and the level of concentration of the banking system affect the long-term ratios. However, the non-statistical significance of banks’ liabilities liquidity opens a policy recommendation for Angola’s monetary policy.”

 

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