Money Demand in Guyana (Electronic book text)

Breaking with a failing state-controlled economy, which marked the two decades after independence in 1966, Guyana embarked on a far-reaching reform process beginning in 1988. This process continued through the 1990s, albeit at an abating pace. Wide-ranging structural reforms, such as the elimination of price controls, the adoption of a free-floating exchange rate, and the privatization of state-owned enterprises set in motion the process of gradually moving the country toward a market economy. At the same time, Guyana implemented a macroeconomic stabilization program supported by the IMF to correct the serious imbalances that had plagued the economy. In that context, monetary policy was conducted in an environment where transmission mechanisms were being deregulated.