{
  "title": "Financial Liberalization, Money Demand, and Inflation in Uganda",
  "publication": "IMF Working Papers, August 1, 2001",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/30/financial-liberalization-money-demand-and-inflation-in-uganda-15356",
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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.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- Uses cointegration analysis to investigate the empirical relationship among money, prices, income, and a vector of interest rates in Uganda from 1982 to 1998.\n- Despite substantial financial market liberalization 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.\n- 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."
    },
    {
      "heading": "Empirical findings",
      "content": "- Sample period: 1982 to 1998 (quarterly time-series).\n- Stability: A stable relationship prevailed among real broad money, income, and domestic and foreign interest rates despite early-1990s liberalization.\n- Key econometric conclusions:\n  - Income homogeneity.\n  - Strong own-rate-of-return effect.\n  - High degree of international capital mobility.\n  - High degree of asset substitutability.\n- Inflation determinants: Both domestic and foreign factors are identified as important determinants of inflation in Uganda."
    },
    {
      "heading": "Subjects and keywords (as listed)",
      "content": "- Subjects: Demand for money, Financial services, Inflation, Interbank rates, Monetary base, Money, Prices, Velocity of money\n- Keywords: broad money velocity, cointegration, Demand for money, demand function, depreciation rate, exchange rate, exchange rate depreciation, financial liberalization, inflation, inflation process, Interbank rates, Monetary base, money demand, Sub-Saharan Africa, treasury bill, Uganda, velocity equation, Velocity of money, WP\n\n---\n\n Content in this bundle\n\n- Financial Liberalization, Money Demand, and Inflation in Uganda - WP/01/118\n  - Financial Liberalization, Money Demand, and Inflation in Uganda - WP/01/118 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Financial Liberalization, Money Demand, and Inflation in Uganda - WP/01/118 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/financial-liberalization-money-demand-and-inflation-in-uganda-15356"
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    "Authors: Jean-Claude Nachega",
    "Published: August 1, 2001",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451854084.001",
    "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 substantial financial market liberalization 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.",
    "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.",
    "Sample period: 1982 to 1998 (quarterly time-series).",
    "Stability: A stable relationship prevailed among real broad money, income, and domestic and foreign interest rates despite early-1990s liberalization.",
    "Key econometric conclusions:",
    "Inflation determinants: Both domestic and foreign factors are identified as important determinants of inflation in Uganda.",
    "Subjects: Demand for money, Financial services, Inflation, Interbank rates, Monetary base, Money, Prices, Velocity of money",
    "Keywords: broad money velocity, cointegration, Demand for money, demand function, depreciation rate, exchange rate, exchange rate depreciation, financial liberalization, inflation, inflation process, Interbank rates, Monetary base, money demand, Sub-Saharan Africa, treasury bill, Uganda, velocity equation, Velocity of money, WP",
    "**Financial Liberalization, Money Demand, and Inflation in Uganda - WP/01/118**"
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