To determine the relative importance of both the domestic and external influences on monetary policy formulation, this paper constructs a broad monetary conditions index for Nigeria. It brings together the three key channels of monetary transmission, namely interest rate, exchange rate and...

There is a broad consensus among economists that, in the long run, inflation is a monetary phenomenon. However, monetary policy is often analysed using models that have no causal role for monetary aggregates in the propagation of inflationary processes. Moreover, impulses from monetary policy...

This paper employs bounds test and Unrestricted Error-Correction Model (UECM) approach to construct the Augmented Monetary Conditions Index (AMCI) over the quarterly period 1981:1-2004:4 for Singapore and compares the discrepancies using two different interest rates (i.e., time deposit rate and...