Financial Liberalisation and Currency Demand in Zambia

Posted: 29 Feb 2008


This paper examines the impact of exchange rate and financial sector liberalisation measures implemented in the early 1990s on the private sector`s demand for base money in Zambia. Using time-series data I show how the removal of controls on asset markets led to a permanent shift in the demand for narrow money. Linked with an increase in forecast volatility, this structural break appears to have undermined the efficacy of money-based stabilisation efforts in Zambia.

Suggested Citation

Adam, Christopher Scott, Financial Liberalisation and Currency Demand in Zambia. Journal of African Economies, Vol. 8, Issue 3, pp. 268-306, 1999, Available at SSRN:

Christopher Scott Adam (Contact Author)

University of Oxford ( email )

United Kingdom

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