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The impact of monetary policy on consumer price index (CPI): 1985-2010


par Sylvie NIBEZA
Kigali Independent University (ULK) - Master Degree 2014
  

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4.2.2 Econometric analysis of the impact of monetary policy on Consumer Price Index

In this part of the study, we use econometric tools in order to analyze the impact of monetary policy on Consumer Price Index. The money supply M2, the nominal interest rate and the nominal exchange rate are used as independent variables in order to measure their impact on CPI. Then, we want to check whether the monetary policy causes inflation or not.

4.2.2.1 Analysis of stationarity for different variables

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