Financial Indicators and Financial Change in Africa and Asia
IMF Working Papers, November 1, 1995
Source details
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Bibliographic details
- Authors: Huw Pill, Mahmood Pradhan
- Published: November 1, 1995
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451854558.001
Summary and main findings
- Deregulation of the financial system often proceeds in tandem with macroeconomic stabilization centered on monetary and other financial targets.
- The paper presents a model where there may be conflict between financial deregulation and stabilization policies.
- The indicator properties of some financial variables may be rendered unstable by the liberalization process.
- 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 and found to be broadly consistent with the predictions of the model.
- The evidence highlights the importance of macroeconomic and financial stability for the success of financial reforms.
Data, scope, and subjects covered
- Regions: Africa; Asia and Pacific
- Subject tags: Bank credit; Banking; Commercial banks; Credit; Economic sectors; Financial institutions; Financial sector; Financial services; Money; Real interest rates
- Keywords included in the source: Africa; Asia and Pacific; Bank credit; broad money; Commercial banks; Credit; data sample; exchange rate; financial liberalization; Financial sector; financial system; liberalization process; liberalization program; narrow money; post liberalization period; private sector; Real interest rates; WP
Policy implications and analytical emphasis
- Policymakers should recognize that financial liberalization can alter the informational content (indicator properties) of standard financial variables used for stabilization.
- Careful selection of financial aggregates is necessary to retain useful signals about real economic activity during stabilization and reform episodes.
- Macroeconomic and financial stability are important preconditions for successful financial reforms.
Publication and document specifics
- Authors: Huw Pill, Mahmood Pradhan
- Publication date: November 1, 1995
- Series: Working Paper No. 1995/123
- Issue: 123
- Volume: 1995
- Pages: 54
- DOI: https://doi.org/10.5089/9781451854558.001
- Stock No: WPIEA1231995
- ISBN: 9781451854558
- ISSN: 1018-5941
- Citation format provided in source: Huw Pill, and Mahmood Pradhan. "Financial Indicators and Financial Change in Africa and Asia", IMF Working Papers 1995, 123 (1995), accessed 9/17/2026, https://doi.org/10.5089/9781451854558.001
Source: IMF Working Paper — "Financial Indicators and Financial Change in Africa and Asia" (authors and publication details as listed above).