Financial Liberalization, Money Demand, and Inflation in Uganda

 
Author/Editor: Nachega, Jean-Claude
 
Publication Date: September 01, 2001
 
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Summary: This paper uses cointegration analysis to investigate the empirical relationship among money, prices, income, and a vector of interest rates in Uganda from 1982 to 1998. Despite the substantial financial market liberalization that has taken place in the early 1990s, quarterly time-series data confirm that a stable relationship prevailed among real broad money, income, and domestic and foreign interest rates. The empirical results indicate income homogeneity, a strong own-rate-of-return effect, a high degree of international capital mobility and asset substitutability, and demonstrate that both domestic and foreign factors are important determinants of inflation in Uganda.
 
Series: Working Paper No. 01/118
Subject(s): Exchange system liberalization | Uganda | Demand for money | Inflation

Author's Keyword(s): Uganda | money demand | inflation | financial liberalization | cointegration
 
English
Publication Date: September 01, 2001
ISBN/ISSN: 1934-7073 Format: Paper
Stock No: WPIEA1182001 Pages: 45
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