Financial Indicators and Financial Change in Africa and Asia

54 Pages Posted: 15 Feb 2006

See all articles by Huw R. Pill

Huw R. Pill

Harvard University - Business, Government and the International Economy Unit

Mahmood Pradhan

Bank of England

Date Written: November 1995

Abstract

Deregulation of the financial system often proceeds in tandem with macroeconomic stabilization centered on monetary and other financial targets. This paper presents a model where there may be conflict between these processes. The indicator properties of some financial variables may be rendered unstable by the liberalization process. However, other, carefully selected financial aggregates may contain information about economic activity that is useful to policy makers during stabilization. Data from a group of selected African and Asian countries is examined. These are broadly consistent with the predictions of the model, while highlighting the importance of macroeconomic and financial stability for the success of financial reforms.

JEL Classification: D92, E21, E51, E52, E58, 016

Suggested Citation

Pill, Huw R. and Pradhan, Mahmood, Financial Indicators and Financial Change in Africa and Asia (November 1995). IMF Working Paper No. 95/123, Available at SSRN: https://ssrn.com/abstract=883269

Huw R. Pill (Contact Author)

Harvard University - Business, Government and the International Economy Unit ( email )

Cambridge, MA
United States
617-495-6788 (Phone)
617-496-5994 (Fax)

HOME PAGE: http://www.people.hbs.edu/hpill

Mahmood Pradhan

Bank of England

Threadneedle Street
London, EC2R 8AH
United Kingdom

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