Specific objectives of this study were including:
· To analyze the impact of monetary policy on Consumer
Price index.
· To find out and describe the strategies of monetary
policy in stabilizing Rwandan economy.
1.5 Research Questions
By attempting to evaluate the impact of monetary policy, the
questions raised are the following:
· Is there any impact of monetary policy on Consumer
price index?
· What are the strategies of monetary policy in
stabilizing economy in Rwanda?
1.6 Hypothesis
According to MUCHIELLI (1979:26) hypothesis are relative
answers which lead work an analysis of data and they have to be tested
consequently, correctly, and deeply by the Work.
From the research questions that were set the following
hypothesis are formulated to guide the researcher throughout study as stated
below:
Ho: monetary policy has no significant impact on CPI.
H1: monetary policy has a significant impact on
CPI.
H0: monetary policy has no significant contribution to
stabilize Rwandan economy.
H1: monetary policy has significant contribution to stabilize
Rwandan economy.
1.7 Scope of the study
This research is limited in area (space), in time (period) and
in domain.
This research is focused in NBR (Bank National du
Rwanda) area in order to manage the time limits and financial
constraints.
It is limited in period 1985-2010 the reason for this period
is the period where some data are available and it is limited in domain of
monetary policy and economy.
This study is defined in a macroeconomic
framework in the sense that it deals with national income and
inflation which are among major macroeconomic aggregates and the way of
stabilizing them. This study concerns mainly the case of NBR.
1.8 Significance of the study
1.8.1 Choice of the study
The researcher has chosen to deal with the impact of monetary
policy on consumer price index (CPI) because of the researcher want to increase
her knowledge and skills in monetary policy on economy.
1.8.2 Interest of study
The interest of study is divided in personal interest,
interest of the community and scientific interest
1.8.2.1 Personal
interest
The interest of this research is to analyze deeply the impact
of monetary policy on consumer price index (CPI).
1.8.2.2 Interest of
the community
The result of this study was facilitating the implementation
of suggestions and recommendations in order to improve the contributions of
monetary policy on CPI.
1.8.2.3 Scientific interest
The interest of this research was facilitating to the students
of Kigali Independent University (ULK) and other researchers to do the research
study to fulfill their academic requirement of being awarded.
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