Abstract
Central banks worldwide attribute a special role to monetary aggregates as they confer vital repercussions on inflation. Alternatively stated, based on the notion that inflation tends to reflect a monetary phenomenon, it becomes warranted to gauge the money demand function. Mauritius initially embarked on monetary aggregates as the tool for monetary policy management before moving to a policy of interest rate targeting and, with time, the ultimate focus is to shift to inflation-targeting framework to secure its credibility in monetary policy. Due consideration is also given to credit aggregates.
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Notes
- 1.
The analysis was undertaken just after 2009 and hence the study used all available data at that time period.
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Inverse roots of AR characteristic polynomial
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Ramlall, I. (2017). Money Demand Analysis in Mauritius. In: Economics and Finance in Mauritius. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-39435-0_8
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