CHAPTER I. APPENDIX I: DERIVATION OF THE INFLATION EQUATION
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Prepared by Koffie Nassar.
Along with the introduction of the MID in 1994, the banking sector was liberalized and foreign exchange deposit accounts allowed. Treasury bills were introduced in 1997.
The data are from the International Financial Statistics.
The rate of return on French treasury bonds is expected to be relevant, given the close relationship of Madagascar’s business community with France since independence in 1960.