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The impact of Central Bank Independence and Transparency on Inflation in Sub-Saharan Africa Kyalisiima Prisca & Yang Jun

The impact of Central Bank Independence and Transparency on Inflation in Sub-Saharan Africa

Author (s)

Kyalisiima Prisca & Yang Jun

Abstract

This study seeks to examine the impact of central bank independence and transparency on inflation in sub-Saharan Africa (SSA). The role of central banks is to maintain price stability in the economy. Many scholars have independent and transparent writings due to the image of the Central Banks. On the other hand, other scholars have made clear the negative effects of high inflation as the main macroeconomic indicator used in this paper. In practice, some current studies have concluded that central bank independence and transparency lead to macroeconomic performance (low inflation). Empirical use of regression and analysis is performed for 15 sub-Saharan African countries with data for the period 1998–14 using panel fixed effects model. This paper contributes to research by exploring more than central bank independence as used by many scholars, and adds to literature about Central Bank Independence in Sub Saharan Africa. The results of this research study show that central bank independence and transparency (participant term; CBI_Transp) are statistically significant at 95%, so central bank independence and transparency go hand in hand; reducing inflation in sub-Saharan Africa. From the regression output, we conclude that the interactive variable and the single variables have positive coefficients, which is contrary to the main neoclassical theory used in this paper.

 Keywords: Central Bank Independence, Transparency, Inflation, Sub-Saharan Africa.

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Title: The impact of Central Bank Independence and Transparency on Inflation in Sub-Saharan Africa
Author: Kyalisiima Prisca & Yang Jun
Journal Name: International Journal of Science and Business
Website: ijsab.com
ISSN: ISSN 2520-4750 (Online), ISSN 2521-3040 (Print)
DOI: https://doi.org/10.5281/zenodo.4235704
Media: Online
Volume: 4
Issue: 12
Acceptance Date: 01/11/2020
Date of Publication: 03/11/2020
PDF URL: https://ijsab.com/wp-content/uploads/623.pdf
Free download: Available
Page: 38-52
First Page: 38
Last Page: 52
Paper Type: Research article
Current Status: Published

 

Cite This Article:

Kyalisiima Prisca & Yang Jun (2020). The impact of Central Bank Independence and Transparency on Inflation in Sub-Saharan Africa. International Journal of Science and Business, 4(12), 38-52. doi: https://doi.org/10.5281/zenodo.4235704

Retrieved from https://ijsab.com/wp-content/uploads/623.pdf

 

About Author (s)

Kyalisiima Prisca (corresponding author), Ph.D Candidate, School of International Trade and Economics, University of International Business and Economics (UIBE), Beijing, China. Lecturer in the Department of Banking and Finance, Mountains of the Moon University, Fort Portal, Uganda.

Prof. Yang Jun, PhD., School of International Trade and Economics, University of International Business and Economics (UIBE), Beijing, China.

 

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DOI: https://doi.org/10.5281/zenodo.4235704

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Impact of Monetary Policy on Performance of Dhaka Stock Exchange Mohotarema Rashid & Ummay Mahima Ima

Impact of Monetary Policy on Performance of Dhaka Stock Exchange

Author (s)

Mohotarema Rashid & Ummay Mahima Ima

Abstract

This paper investigates the effect of monetary variables on the performance of stock market of Bangladesh using yearly data over the period of year 2008 to 2019. The objective of the study is to consider the effectiveness and consequences of different monetary variables on stock market of Bangladesh. As a dependent variable DSEX index has been used as a proxy variable for stock market performance and three independent variables repo rate, inflation rate, money market rate has been used as proxy of monetary variables. An ordinary least square method shows that 1% increase in money market rate, repo rate, and inflation rate the index value is decreased by 3.30%,1.20% and increased by 1.90% respectively. So this is suggested that investor should consider the above variables to make strategic decisions about portfolio and investment management.

 Keywords: Monetary variables, DSEX, Stock market, Inflation, Repo rate.

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Title: Impact of Monetary Policy on Performance of Dhaka Stock Exchange
Author: Mohotarema Rashid & Ummay Mahima Ima
Journal Name: International Journal of Science and Business
Website: ijsab.com
ISSN: ISSN 2520-4750 (Online), ISSN 2521-3040 (Print)
DOI: https://doi.org/10.5281/zenodo.4059374
Media: Online
Volume: 4
Issue: 10
Acceptance Date: 24/09/2020
Date of Publication: 30/09/2020
PDF URL: https://ijsab.com/wp-content/uploads/605.pdf
Free download: Available
Page: 121-127
First Page: 121
Last Page: 127
Paper Type: Research Paper
Current Status: Published

Cite This Article:

Mohotarema Rashid & Ummay Mahima Ima (2020). Impact of monetary policy on performance of Dhaka Stock Exchange. International Journal of Science and Business, 4(10), 121-127. doi: https://doi.org/10.5281/zenodo.4059374

Retrieved from https://ijsab.com/wp-content/uploads/605.pdf

 

About Author (s)

Mohotarema Rashid (corresponding author), Bangladesh Army University of Science and Technology, Bangladesh.  

Ummay Mahima Ima, Bangladesh University of Professionals, Dhaka- 1216, Bangladesh.

 

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DOI: https://doi.org/10.5281/zenodo.4059374