The full text of this article

 

The impact of financial inclusion on monetary policy effectiveness: the case of Malawi
by Angella Faith Lapukeni
International Journal of Monetary Economics and Finance (IJMEF), Vol. 8, No. 4, 2015

 

Abstract: Financial inclusion is critical as it leads to an improved reach and effectiveness of monetary policy. The paper used quarterly data for Malawi to conduct empirical analysis of the impact of financial inclusion on monetary policy effectiveness. Using vector autoregression model (VAR), granger causality tests, and basic trend analyses, the study revealed consistent trends and some causality between financial inclusion indicators and inflation: the indicator for monetary policy effectiveness. The results further showed that money supply had an inverse relationship with inflation contrary to economic theory. The findings suggest that this is because the accounting of monetary aggregates does not include the activities of those outside the banking system. With this in view, the study concludes that financial inclusion will enable monetary policy to extend its reach to the financially excluded and aid policy makers to make better predictions of movements in inflation using monetary statistics.

Online publication date: Fri, 27-Nov-2015

 

is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

 
Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

 
Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Monetary Economics and Finance (IJMEF):
Login with your Inderscience username and password:

 

    Username:        Password:         

Forgotten your password?


 
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

 
If you still need assistance, please email subs@inderscience.com