Advanced

INFLATION TARGETING LITE REGIME IN UGANDA

Nabbosa, Olivia LU (2017) NEKN01 20171
Department of Economics
Abstract
This paper analyses the impact of inflation targeting as a monetary policy framework on inflation volatility and inflation rates in Uganda, with a comparison with South Africa and Ghana (full-fledged inflation targeting economies) and Kenya that opted for a forward looking monetary framework. The results show that inflation targeting in Uganda has been efficient in reducing inflation volatility and inflation in Uganda. Empirical findings suggest that persistent supply shocks may hinder the effectiveness of inflation targeting as the case with Ghana. The results also showed that full-fledged inflation targeting economies with less supply shocks have less inflation volatility than economies with transitional regimes as seen from South Africa... (More)
This paper analyses the impact of inflation targeting as a monetary policy framework on inflation volatility and inflation rates in Uganda, with a comparison with South Africa and Ghana (full-fledged inflation targeting economies) and Kenya that opted for a forward looking monetary framework. The results show that inflation targeting in Uganda has been efficient in reducing inflation volatility and inflation in Uganda. Empirical findings suggest that persistent supply shocks may hinder the effectiveness of inflation targeting as the case with Ghana. The results also showed that full-fledged inflation targeting economies with less supply shocks have less inflation volatility than economies with transitional regimes as seen from South Africa and Uganda. Secondly empirical findings in this study render a forward-looking monetary policy framework less effective in controlling inflation volatility compared to inflation targeting. Lastly the paper also shows that money growth targeting was inefficient in controlling inflation rates and inflation volatility and hence justifying its abandonment. (Less)
Please use this url to cite or link to this publication:
author
Nabbosa, Olivia LU
supervisor
organization
alternative title
HOW EEFECTIVE IS INFLATION TARGETING LITE AS A MONETARY POLICY FRAMEWORK IN CONTROLLING INFLATION AND INFLATION VOLATILITY IN UGANDA
course
NEKN01 20171
year
type
H1 - Master's Degree (One Year)
subject
keywords
Inflation targeting Inflation targeting lite Inflation volatility
language
English
id
8923292
date added to LUP
2017-09-12 11:53:40
date last changed
2017-09-12 11:53:40
@misc{8923292,
  abstract     = {This paper analyses the impact of inflation targeting as a monetary policy framework on inflation volatility and inflation rates in Uganda, with a comparison with South Africa and Ghana (full-fledged inflation targeting economies) and Kenya that opted for a forward looking monetary framework. The results show that inflation targeting in Uganda has been efficient in reducing inflation volatility and inflation in Uganda. Empirical findings suggest that persistent supply shocks may hinder the effectiveness of inflation targeting as the case with Ghana. The results also showed that full-fledged inflation targeting economies with less supply shocks have less inflation volatility than economies with transitional regimes as seen from South Africa and Uganda. Secondly empirical findings in this study render a forward-looking monetary policy framework less effective in controlling inflation volatility compared to inflation targeting. Lastly the paper also shows that money growth targeting was inefficient in controlling inflation rates and inflation volatility and hence justifying its abandonment.},
  author       = {Nabbosa, Olivia},
  keyword      = {Inflation targeting Inflation targeting lite Inflation volatility},
  language     = {eng},
  note         = {Student Paper},
  title        = {INFLATION TARGETING LITE REGIME IN UGANDA},
  year         = {2017},
}