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Human Development:“Can money buy Happiness?â€

Author

Listed:
  • Benjamin YAMB

    (Advanced School of Economics and Commerce (ESSEC), University of Douala)

  • Jean Louis EKOMANE

    (Advanced School of Economics and Commerce (ESSEC), University of Douala)

Abstract

What is the relationship between the amount of money in circulation in an economy and the level of development of that economy? This is the question we seek to answer in this work. It falls within the scope of development monetary macroeconomics, applied to one hundred (100) countries selected among the 186 classified by the UNDP. This classification is done according to their Development index level, represented by the Human Development Index (HDI). For all these countries, we analyze the impact of money, measured by the macroeconomic liquidity ratio M2/GDP on HDI level. Empirical verification is based on data from the 2015 World Bank’s ranking. This aims at determining the meaning and degree of money impact on human being’s integral development. Our study finds that "money provides happiness" much more in poor countries than in rich ones, while this link is much more mitigated in emerging countries.

Suggested Citation

  • Benjamin YAMB & Jean Louis EKOMANE, 2019. "Human Development:“Can money buy Happiness?â€," Romanian Journal of Economics, Institute of National Economy, vol. 49(2(58)), pages 31-49, December.
    • Handle: RePEc:ine:journl:v:49:y:2019:i:58:p:31-49
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    More about this item

    Keywords

    money; Human Development Index; happiness; poor and rich countries; BRICS;
    All these keywords.

    JEL classification:

    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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