The Effects of Monetary Policy on Households’ Consumption Decisions in Uganda.
Loading...
Date
2023-09-11
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Uganda Christian University
Abstract
This paper examined if monetary policies significantly affect households’ consumption decisions in Uganda. Monetary policies; actions taken by a central bank or other monetary authorities to manage the supply and demand of money and credit in an economy. Its primary objective being to promote price stability and sustainable economic growth. The effects of monetary policies (independent variables); interest rates, exchange rates, money supply and cash reserve ratio, and other economic indicators that may influence households’ consumption decisions such as; Economic outlook, savings, investment, inflation, and employment rates in Uganda were studied. The study adopted both descriptive and analytical research designs. Secondary data was used. The data used was captured by the central bank of Uganda and the Uganda Bureau of Statistics to better understand the in-depth changes in data. The data summary and analysis was done using STATA 15.0 to produce inferential statistics regression analysis to determine the relationships between the dependent and independent variables. From the data analyses conducted, it was evident that there was no significant effect of monetary policies on households’ consumption decisions as the hypothesis of the study states. This was further examined and we found out that, on a larger extent, only 1% of monetary policy impacts on the economy can directly inflict households’ consumption decisions. An inverse relationship between household consumption decisions and impact of monetary policy in the economy was observed, this also applied to the relationship between household consumption decisions and monetary policy effectiveness in the economy.
Description
This is a dissertation.