| Abstract: | Regional monetary integration, financial liberalisation andthe adoption of indirect policy instruments continue to changethe conditions for monetary policy in the West African Economicand Monetary Union (WAEMU). While the identification of a stablemoney demand relationship has become a crucial element for monetarypolicy, differences in economic behaviour between Côted'Ivoire and the remaining countries may induce instabilityat the aggregate level. This paper analyses the demand for moneyfor the entire WAEMU, the six smaller member countries, andCôte d'Ivoire. A stable aggregate money demand functionis identified and interpreted in light of the results for thesub-regional estimations. |
