@workingpaper{Asongu2013bs,
title = {Correcting inflation with financial dynamic fundamentals: which adjustments matter in Africa?},
author = {Simplice A Asongu},
editor = {African 2013 Governance and Development Institute WP/13/003},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Correcting-inflation-with-financial-dynamic-fundamentals.-Which-adjustments-matter-in-Africa.pdf},
year = {2013},
date = {2013-04-01},
abstract = {This paper assesses the adjustment of inflation with financial dynamic fundamentals of
money (financial depth), credit (financial activity) and efficiency. Three main findings are
established. (1) There are significant long-run relationships between inflation and the
fundamentals. (2) The error correction mechanism is stable in all specifications but in case of
any disequilibrium, only financial depth is significant in adjusting inflation to the long-run
relationship. (3) In the long-run, short-term adjustments in the ability of banks to transform
money into credit do not matter in correcting inflation. This is most probably due to surplus
liquidity issues. Policy implications are discussed.},
keywords = {Excess money; inflation; credit; Africa},
pubstate = {published},
tppubtype = {workingpaper}
}