Volume 1, Issue 2, December 2017, Page: 65-69
An Empirical Analysis of the Degree of Independence and Transparency of Central Bank of Rwanda
Harerimana Jean de Dieu, School of Economics, University of Nairobi, Nairobi, Kenya
Uwacu Florent, School of Economics, University of Nairobi, Nairobi, Kenya; Statistical Analysis and Research Support, Kigali, Rwanda
Received: Oct. 7, 2017;       Accepted: Nov. 2, 2017;       Published: Dec. 22, 2017
DOI: 10.11648/j.jppa.20170102.13      View  1139      Downloads  71
Abstract
The aim of this paper is, thus, to evaluate the degree of independence and transparency of the Central Bank of Rwanda. The econometric time series using ARDL model estimated the counterfactual effect of the side effect of the policy from the period of 1980 to 2015. Macroeconomic variables were used to predict each outcome from past inflation, openness, GDP per capita, and various measures of the strength of institutions as explanatory variables. The results showed that inflation and interest rate remained inconclusive to have a long run relationship while the participatory labor rate has a long run relationship with trade openness. In conclusion, the empirical analysis fails to explain the fluctuation in the interest rate or keeping the inflation under control may not mean the low level of independence or transparency from Central Bank of Rwanda.
Keywords
Independence, Transparency, Central Bank, ARDL
To cite this article
Harerimana Jean de Dieu, Uwacu Florent, An Empirical Analysis of the Degree of Independence and Transparency of Central Bank of Rwanda, Journal of Public Policy and Administration. Vol. 1, No. 2, 2017, pp. 65-69. doi: 10.11648/j.jppa.20170102.13
Copyright
Copyright © 2017 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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