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Autor
Twinoburyo Enock Nyorekwa (University of South Africa, Pretoria, South Africa), Odhiambo Nicholas M. (University of South Africa, Pretoria, South Africa)
Tytuł
Can Monetary Policy Drive Economic Growth? Empirical Evidence from Tanzania
Źródło
Contemporary Economics, 2018, vol. 12, nr 2, s. 207-221, rys., tab., bibliogr. 77 poz.
Słowa kluczowe
Polityka pieniężna, Wzrost gospodarczy, Stopa procentowa, Podaż pieniądza
Monetary policy, Economic growth, Interest rate, Money supply
Uwagi
Klasyfikacja JEL: E1, E43, E51, E52
summ.
Kraj/Region
Tanzania
Tanzanian
Abstrakt
The role of monetary policy in promoting economic growth remains empirically an open research question. This paper attempts to bridge the knowledge gap by investigating the impact of monetary policy on economic growth in Tanzania during the period from 1975 to 2013, using the autoregressive distributed lag (ARDL) bounds-testing approach. To our knowledge, this study may be the first of its kind to examine in detail this nexus in Tanzania. The study uses two proxies of monetary policy, namely, money supply and interest rate, to examine this linkage. The empirical results of this study reveal no impact of monetary policy on economic growth in the long term - irrespective of the proxy used to measure monetary policy. However, the short-term results confirm the existence of monetary policy neutrality - but only when the interest rate is used as a proxy for monetary policy. When money supply is used to measure monetary policy, a negative relationship between monetary policy and economic growth is found to predominate. The study findings suggest that monetary policy may not be a panacea for economic growth in Tanzania. (original abstract)
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Bibliografia
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Cytowane przez
Pokaż
ISSN
2084-0845
Język
eng
URI / DOI
http://dx.doi.org/10.5709/ce.1897-9254.272
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