Money,credit, income and prices in sub‐Saharan Africa: Where do we stand?

The study empirically tested the short‐term influence of changes in money and credit on (nominal and real) income and inflation. The stability of this role was tested over three time periods (end of the 1960s, late 1970s and late 1980s) using cross‐sectional data for 26 sub‐Saharan African countries. Significance tests revealed that while the monetary impact on nominal income growth and inflation increased across the three time periods, the relationship between real money and real income growth weakened. Stability tests showed that the role of money shifted significantly for the 1980s in relation to the other two periods.