Tue dole of National Bank of Rwanda from 1995 to 2010
par Paterne RUKUNDO
National university of Rwanda - A0 2011
The study has the general and specific objectives
The performance of the economy as reflected in factors such as law inflation rate, economic output and full employment.
The impact of financial sector through stabilizer-controller (NBR) on the economic growth towards development for Rwanda is necessary to determine whether financial sector can be viewed as an alternative pillar for future economic growth especially within the Vision 2020 framework.
v To identify the activities of central bank on bank system,
v To examine the participation of the beneficiaries on development,
v To examine the real impact of National Bank of Rwanda's activities on beneficiaries of development,
v To come up with suggestions and recommendations to the above.
It is mindset that there are many indicators of development but some of them will be selected for being estimated and others will be represented by error term.
The topic has four variables that are explained (dependent) variable and explanatory (independent) variables.
Explained variable is money stock (Mt) and the explanatory variables are output gap that is the variation of GDP and its potential (GDP Gap or GY), inflation Gap that is variation of inflation and its potential (IG) and variation of exchange rate (DEX). The model from these variables explains the role of central bank through monetary policy.
Mt= B0 + B1Mt-1 + B2IGt + B3IGt-1 + B4YGt + B5YGt-1 +B 6DEXt +B 7DEXt-1 + åt
Where, Mt is money stock or quantity of money, IGt is inflation gap, YGt is GDP gap and DEX is variation of exchange rate.
In this research, only quantitative methods with secondary data analyzed by computer program called «E-VIEWS 3.1» will be considered.
Development economic has a greater scope, in addition to being concerned with the efficient allocation existing scarce productive resources and with their sustained growth over time. It must also deal with the economic, social, political and institutional mechanisms, both public and private, necessary in level of living for the people. It means that this study is located in macroeconomics science.
The study analyses the role of National Bank of Rwanda on economic growth towards development through development of financial institutions by monetary policy covers the period of 1995 to 2010.
In space, the study is concerned with case of National Bank of Rwanda (NBR)
The topic under study may not be easy to conduct and therefore may not be properly achieved. This is merely because of the fact that there are a number of obstacles encountered in gathering data, ranging from limitations of time and finance, doubtfulness of data availability etc.
As the first chapter of general introduction is seen above, the rest of the study is structured as follows: chapter two gives brief review of literature on the subject, Chapter three presents the methodology used, in chapter four we analyze data and report our results, last chapter contains conclusion and suggestions.