Effects of Government Debt on Monetary Policy Strategy in Tanzania
| dc.contributor.author | Mwankemwa, Suma P. | |
| dc.date.accessioned | 2022-12-28T06:28:58Z | |
| dc.date.available | 2022-12-28T06:28:58Z | |
| dc.date.issued | 2022-06-30 | |
| dc.description.abstract | This paper examines the fscal dominance hypothesis in Tanzania by exploring the relationship between the monetary base and the government debt using monthly data from 2003:1 to 2019:12. Results from formal statistical tests indicate no evidence of a long-run relationship between the variables. Structural vector autoregressive model is thus estimated to analyse the short-run dynamics. The fndings point to a positive and statistically signifcant impact of government debt on monetary base. The fndings identifes political phenomenon that before the fourth phase government (2003-2005), monetary policy witnessed relatively intensive fscal dominance as compared to the fourth phase (2005- 2015) and ffth phase government (2015-2019). However, in comparison with the fourth phase government, fndings suggest that during the frst four years of the ffth phase government, monetary policy encountered a relatively high fscal influence, partly attributed to implementation of huge development projects and reduction in foreign fnancing in the government budget. The identifed fscal dominance for the sample period, implies a subordinated monetary policy, compromising on Bank of Tanzania’s primary objective of price stability. | en_US |
| dc.identifier.issn | 2591-6815 | |
| dc.identifier.uri | https://repository.tia.ac.tz/handle/123456789/118 | |
| dc.language.iso | en | en_US |
| dc.publisher | African Journal of Accounting and social science (AJASSS) | en_US |
| dc.relation.ispartofseries | Vol. 4;Issue No. 1 | |
| dc.subject | Fiscal dominance; SVAR; Monetary policy; Tanzania | en_US |
| dc.title | Effects of Government Debt on Monetary Policy Strategy in Tanzania | en_US |
| dc.type | Article | en_US |