Assesment of Ethiopian Monetary Policy: The Prospect of Inflation Targeting Using Monetary Var
| Thesis title in Czech: | |
|---|---|
| Thesis title in English: | Assesment of Ethiopian Monetary Policy: The Prospect of Inflation Targeting Using Monetary Var |
| Key words: | developing countries, monetary policy, inflation |
| English key words: | developing countries, monetary policy, inflation |
| Academic year of topic announcement: | 2010/2011 |
| Thesis type: | diploma thesis |
| Thesis language: | angličtina |
| Department: | Institute of Economic Studies (23-IES) |
| Supervisor: | PhDr. Jaromír Baxa, Ph.D. |
| Author: | hidden - assigned by the advisor |
| Date of registration: | 10.06.2011 |
| Date of assignment: | 10.06.2011 |
| Date and time of defence: | 13.09.2012 00:00 |
| Venue of defence: | IES |
| Date of electronic submission: | 30.07.2012 |
| Date of proceeded defence: | 13.09.2012 |
| Opponents: | Mgr. Jan Šolc |
| URKUND check: | |
| Guidelines |
| Research questions
1. What is the reason for the current objective of the monetary policy in Ethiopia? 2. What is the current performance of Ethiopian monetary policy in terms of achieving its stated objective? 3. Is there any room or need for another monetary policy? If any is it applicable with the current economic scenario? Hypotheses 1. To foster sound financial system and to facilitate to the economic growth of Ethiopia. 2. The current monetary policy is incapable of keeping stable the price level and the exchange rate. 3. Some Africa countries like Ghana and south Africa are able to apply inflation targeting therefore there is no reason why not in Ethiopia. Beside to that the current inflation targeting requires such policy. |
| References |
| 1. James, H & Léonce, N,(2010): “Is There a Case for Formal Inflation Targeting in Sub-Saharan Africa?” political economy research institute ,working paper series 218.
2. James tobin (1998) “monetary policy: recent theory and practice” cowles foundation discussion paper no. 1187 3. Ben S. B. and Ilian .M (1995) “ Measuring monetary policy “ NBER working paper series 5145 4. Mattias .V and Anders .W (2003) “Monetary Policy Analysis in a Small Open Economy using Bayesian Cointegrated Structural VARs” sveriges riksbank working paper series, no 156 5. Paul R.M, Miguel A.S and Sunil S.(1997) “ The scope of inflation targeting in developing countries “ IMF working paper series ,number 130. 6. Gerard C.J and patrik .H (1990)“ Monetary policy instrument for developing countries “ world bank working paper series ,number 528. 7. Haizhou H. and Shang-Jin W. “Monetary policies for developing countries: The role of institutional quality’, Journal of International Economics 70 (2006) 239 –252 8. Robert F. Lucas, Christopher D. Gerrard and Tom G. Porter “Monetary Policy in Developing Countries:Lessons from Kenya” Journal of International Trade and Economic Development, Discussion Paper 2003-1 |
| Preliminary scope of work |
| Although there is a general agreement on the neutrality of monetary policy in the long run, there is a disagreement on its impact in the short run. Accordingly while the neo classical economists believe that systematic monetary policy will not have an impact on the real variables, to the contrary the neo Keynesians economists believe that systematic policy will have an impact to the real variables. When we see empirical results it is not clear cut. But the one thing they both agree is that monetary policy can be used to keep price stable (not to be a problem by itself). However the disagreement of economists will not end here, beside to the above disagreements economists do not agree which specific monetary policy we have to use even to make the monetary policy of being a problem by itself.
Taking the above arguments in to account this paper will try to assess the current monetary policy in Ethiopia and evaluate its performance towards achieving stability of price and exchange rate. At last but not a least this paper will try to see if there is a need for another monetary policy to achieve the above objectives. |
| Preliminary scope of work in English |
| Although there is a general agreement on the neutrality of monetary policy in the long run, there is a disagreement on its impact in the short run. Accordingly while the neo classical economists believe that systematic monetary policy will not have an impact on the real variables, to the contrary the neo Keynesians economists believe that systematic policy will have an impact to the real variables. When we see empirical results it is not clear cut. But the one thing they both agree is that monetary policy can be used to keep price stable (not to be a problem by itself). However the disagreement of economists will not end here, beside to the above disagreements economists do not agree which specific monetary policy we have to use even to make the monetary policy of being a problem by itself.
Taking the above arguments in to account this paper will try to assess the current monetary policy in Ethiopia and evaluate its performance towards achieving stability of price and exchange rate. At last but not a least this paper will try to see if there is a need for another monetary policy to achieve the above objectives. |