Financial Liberalization, Money Demand, and Inflation in Uganda, Issues 2001-2118

Front Cover
International Monetary Fund, African Department, Sep 1, 2001 - Demand for money - 45 pages
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.

From inside the book

What people are saying - Write a review

We haven't found any reviews in the usual places.


Conclusions and Policy Implications

Other editions - View all

Common terms and phrases

Bibliographic information