This paper presents an empirical investigation into the level and stability of money demand (M1) in Nigeria between 1960 and 2008. In addition to estimating the canonical specification, alternative models are presented that include additional variables to proxy for the cost of holding money....

Should Reserve Bank of Fiji (RBF) use rate of interest to control private consumption expenditure in Fiji? This paper investigates whether rate of interest is an appropriate monetary policy instrument to reduce consumption in Fiji. Results indicate that interest rate has no effect on private...

We assess whether central banks may use inflation expectations as a policy tool for stabilization purposes. We review recent work on how expectations of agents are formed and how they affect their economic decisions. Empirical evidence suggests that inflation expectations of households and firms...