TY  - JOUR
AB  - Purpose The purpose of this paper is to investigate the stability of demand for money in the proposed Southern African Monetary Union (SAMU).Design/methodology/approach The study uses annual data for the period 1981 to 2015 from ten countries making-up the Southern African Development Community. A standard function of demand for money is designed and estimated using a bounds testing approach to co-integration and error-correction modeling.Findings The findings show divergence across countries in the stability of money. This divergence is articulated in terms of differences in cointegration, CUSUM (cumulative sum) and CUSUMSQ (CUSUM squared) tests, short run and long-term determinants and error correction in event of a shock. Policy implications are discussed in the light of the convergence needed for the feasibility of the proposed SAMU.Originality/value This study extends the debate in scholarly and policy circles on the feasibility of proposed African monetary unions.
VL  - 15
IS  - 2
SN  - 1746-8809
DO  - 10.1108/IJOEM-08-2018-0443
UR  - https://doi.org/10.1108/IJOEM-08-2018-0443
AU  - Asongu Simplice
AU  - Folarin Oludele
AU  - Biekpe Nicholas
PY  - 2019
Y1  - 2019/01/01
TI  - The stability of demand for money in the proposed Southern African Monetary Union
T2  - International Journal of Emerging Markets
PB  - Emerald Publishing Limited
SP  - 222
EP  - 244
Y2  - 2024/04/24
ER  -