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| Douglason G Omotor |
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| ''The demand for international reserves and monetary equilibrium: the case of nigeria.'' |
| ( 2009, Vol. 29 No.3 ) |
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| The purpose of this paper is to empirically evaluate a dynamic error correction model that incorporates monetary disequilibrium in the demand for international reserves using Nigerian data for the period 1970 – 2007. The results show that reserves movement respond both to actual and desired reserves divergences and equally to monetary disequilibrium conditions; implying a high level of international reserves sterilization and equilibrium adjustment correction in the Nigerian financial system. |
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| Keywords: International reserves, monetary equilibrium, sterilization, Nigeria |
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| Manuscript Received : Aug 02 2009 | | Manuscript Accepted : Aug 03 2009 |
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