04317oam 22010814 450 991082568430332120230828232710.01-4623-3669-81-4527-8344-61-283-51394-31-4519-0909-89786613826398(CKB)3360000000443630(EBL)3014348(SSID)ssj0000940758(PQKBManifestationID)11528528(PQKBTitleCode)TC0000940758(PQKBWorkID)10955516(PQKB)11217938(OCoLC)449992447(MiAaPQ)EBC3014348(IMF)WPIEE2006115(EXLCZ)99336000000044363020020129d2006 uf 0engur|n|---|||||txtccrExcess Liquidity and Effectiveness of Monetary Policy : Evidence from Sub-Saharan Africa /Magnus SaxegaardWashington, D.C. :International Monetary Fund,2006.1 online resource (52 p.)IMF Working Papers"May 2006."1-4518-6375-6 Includes bibliographical references.""Contents""; ""I. INTRODUCTION""; ""II. SOME STYLIZED FACTS ON RESERVE REQUIREMENTS AND EXCESS LIQUIDITY IN AFRICAN COUNTRIES""; ""III. MEASUREMENT OF EXCESS LIQUIDITY""; ""IV. EXCESS BANK LIQUIDITY AND MONETARY POLICY TRANSMISSION MECHANISM""; ""V. SUMMARY AND POLICY IMPLICATIONS""; ""References""This paper examines the pattern of excess liquidity in sub-Saharan Africa and its consequences for the effectiveness of monetary policy. The paper argues that understanding the consequences of excess liquidity requires quantifying the extent to which commercial bank holdings of excess liquidity exceed levels required for precautionary purposes. It proposes a methodology for measuring this quantity and uses it to estimate a nonlinear structural VAR model for the CEMAC region, Nigeria and Uganda. The study suggests that excess liquidity weakens the monetary policy transmission mechanism and thus the ability of monetary authorities to influence demand conditions in the economy.IMF Working Papers; Working Paper ;No. 2006/115Monetary policyAfrica, Sub-SaharanEconometric modelsLiquidity (Economics)Econometric modelsBanks and BankingimfFinance: GeneralimfMoney and Monetary PolicyimfPortfolio ChoiceimfInvestment DecisionsimfBanksimfDepository InstitutionsimfMicro Finance InstitutionsimfMortgagesimfMonetary PolicyimfFinanceimfBankingimfMonetary economicsimfExcess liquidityimfCommercial banksimfReserve requirementsimfMonetary transmission mechanismimfLiquidityimfEconomicsimfBanks and bankingimfMonetary policyimfNigeriaimfMonetary policyEconometric models.Liquidity (Economics)Econometric models.Banks and BankingFinance: GeneralMoney and Monetary PolicyPortfolio ChoiceInvestment DecisionsBanksDepository InstitutionsMicro Finance InstitutionsMortgagesMonetary PolicyFinanceBankingMonetary economicsExcess liquidityCommercial banksReserve requirementsMonetary transmission mechanismLiquidityEconomicsBanks and bankingMonetary policySaxegaard Magnus1604262International Monetary Fund.African Dept.DcWaIMFBOOK9910825684303321Excess Liquidity and Effectiveness of Monetary Policy4058381UNINA