Abstract: | Based on data for the period 1965-1988, the author explores the factors influencing the demand for money in Malawi. The evidence presented suggests that the level of real income and the lagged money demand are important in influencing the demand for money in Malawi. The level of real income is important when the long-run demand for money function is considered. On the other hand, the level of real income and the lagged money demand function are found to be significant in explaining the short-run money demand function when the previous money is used. The expected rate of inflation and the degree of monetization are found to be insignificant. Bibliogr., notes, ref. |