This research report studied the
determinants of loan demand by the private sector in the Uganda. Employing a
time series analysis using the Johansen methodology, the study identified one
cointegrating relationship linking private sector demand for credit to GDP,
lending rate, Broad money, Bank credit to government and risk premium of
lending to the private sector hence the existence of a long run relationship
between them. The long run model indicated private sector demand for credit i...
The ability to model a stable relationship between money and prices
is fundamentally considered a necessary requirement for a monetary targeting
framework. Having a stable money demand function helps to ensure that the
desired impact of monetary policy is predictable. The study undertaken sought
to explain the determinants of money demand in Uganda employing cointegration
analysis to establish the existence of a long-run relationship between Money,
income, a vector of interest rates, in...