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Tue dole of National Bank of Rwanda from 1995 to 2010

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par Paterne RUKUNDO
National university of Rwanda - A0 2011
  

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CHAPTER III: METHODOLOGY

3.1. Introduction

This chapter explains in few words how the research has been conducted. It gives the plan, strategy research design that is required for the study. Plan includes what is done from writing the hypotheses and their operational implications to the final analysis of data. Strategy includes the methods to be used to gather and analyze the data and implies how the research objectives was reached and how the problems encountered will be tacked (Kerlinger, 1973: 300)

The study covers the period of 1995-2010. It includes explanatory variables that explain the money stock. These variables are typically of those identified in most studies of role of central bank. The money stock has been used as the dependent variable in the estimation. The study employs an econometric technique of cointegration methodology. The data that are used in this study are secondary data obtained from Ministry of Economics and Finance, Rwanda National Institute of Statistics publications as well as reports prepared by National Bank of Rwanda.

3.2. Data collection

3.2.1. Sources of data

Secondary data: data analysis in the econometric part of this research requires data provided by different institutions. As such, these data are secondary data. The National Bank of Rwanda is the principally source of data on Inflation, GDP, exchange rate and of course Money supply. So, figures on these indicators as well as on other that could help specify an appropriate Taylor rule model have been collected at the National Bank of Rwanda. But because a big part of the research deals with the role of Central Bank on Rwandan economic development , the national bank of Rwanda is not only a source of data.

Primary data: the methodology for the compilation of the role of National Bank of Rwanda (NBR) at the beginning of the research through monetary policy. So, staff from the national bank of Rwanda provided useful information on how the Inflation, Money stock, GDP and Exchange had been compiled during the period covered by the present research.

Because the researcher had difficulty of finding out that piece of information, it became necessary to interview the staff in charge of the research at the National Bank of Rwanda.

3.2.2. Data collection procedure

Most of the data was collected from the NBR library. Where, the staff was very helpful in the delivering the appropriate documents. Many of the documents were annual reports, but some other reading materials, like monthly publications; relevant to this study was also provided.

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