There has been a general consensus among economists that while the long-run effects of money are felt only on prices with no impact on real variables, monetary policy changes do have important short-run effects on real variables. The objective of the paper is to investigate whether money has...

For successful monetary policy formulation and implementation, monetary authorities need to establish the existence of a stable relationship between reserve money and money supply so that changes in reserve money manipulated by policy changes can have desirable, intended effects on money stock....

The financial crisis in USA in late 2007 led to fall in economic activities in the industrialized countries. A global recession was triggered, with resulting decline in imports from Pacific island countries (PICs) and falling tourism earnings. Monetary policy options, which are available to six...