• Login
    View Item 
    •   ResearchSpace Home
    • College of Law and Management Studies
    • School of Accounting, Economics and Finance
    • Economics and Finance
    • Masters Degrees (Economics and Finance)
    • View Item
    •   ResearchSpace Home
    • College of Law and Management Studies
    • School of Accounting, Economics and Finance
    • Economics and Finance
    • Masters Degrees (Economics and Finance)
    • View Item
    JavaScript is disabled for your browser. Some features of this site may not work without it.

    An analysis of money demand stability in Rwanda.

    Thumbnail
    View/Open
    thesis (4.247Mb)
    Date
    2005
    Author
    Sayinzoga, Aussi.
    Metadata
    Show full item record
    Abstract
    A stable money demand function and exogeneity of prices is at the core of planning and implementing a monetary policy of monetary targets. This thesis examines both the stability of M2 money demand and price exogeneity in Rwanda for the years 1980 to 2000. We estimate and test the elasticities of the determinants of Rwandan money demand function. We include in this demand function those variables which economic theory indicates must be part of any empirical investigation of money demand. All coefficients had the signs as required by economic theory. We estimate the money demand function for Rwanda using cointegration analysis and an error correction mechanism. The results show real income, prices and M2 to be cointegrated. We employ three tests to show that the estimated demand function for Rwanda is stable. We then test the second requirement for coherence in monetary aggregate targeting that money determines prices. The results show that prices are exogenous to money. But before we can definitely conclude that an inflation targeting regime is feasible from monetary policy perspective, we point out that future research on this important topic must account for exchange rate movements, measure permanent income and specify interest rate changes correctly.
    URI
    http://hdl.handle.net/10413/1692
    Collections
    • Masters Degrees (Economics and Finance) [117]

    DSpace software copyright © 2002-2013  Duraspace
    Contact Us | Send Feedback
    Theme by 
    @mire NV
     

     

    Browse

    All of ResearchSpaceCommunities & CollectionsBy Issue DateAuthorsTitlesSubjectsAdvisorsTypeThis CollectionBy Issue DateAuthorsTitlesSubjectsAdvisorsType

    My Account

    LoginRegister

    DSpace software copyright © 2002-2013  Duraspace
    Contact Us | Send Feedback
    Theme by 
    @mire NV