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Title: Evaluation of the Effectiveness of Monetary Policy in Zambia from 1996 to 2016
Authors: Chikwashi, Malama
Keywords: Monetary Policy,oreign exchange rates
Issue Date: 25-Mar-2019
Publisher: ZCAS University
Citation: Harvard
Abstract: Purpose - The purpose of the study is to evaluate the effectiveness of the Bank of Zambia Monetary Policy from1996 to 2016. The study was done broadly on the Bank of Zambia, which is the central Bank of Zambia. Research design and methodology - The study was steered by the epistemological method of Positivism and Critical Realism. The study was based on both qualitative and quantitative research methods with data collected from secondary sources. Annual reports, books and online literature were review to satisfy the research objectives. Findings - The main conclusion of the study showed that the Bank of Zambia monetary policy has been effective during the period under review. In cases where the study revealed otherwise, was as a result of factors outside monetary policy such us high electricity tariffs and high costs of oil procurement among others. Limitations - The study could have revealed more results if complete data was available. The limitation of data restricted the researcher from finding out the full correlation on interest rates, bonds yield rates, inflation, foreign exchange rates, money supply as well as financial stability in terms of number of commercial banks and other financial institutions. Nonetheless, the limitation did not compromise validity of the research findings. Recommendations - The study recommends that Bank of Zambia maintains the current monetary policy stance as the study shows that is it effective. The central bank will benefit more if the concentration of monetary policy implementation focusses on interest rates and treasury bill yields to inject short liquidity and mop up surplus liquidity into and from the market. Conclusion - The research concludes that that there is negative relationship between money supply and the yield rates on treasury bills and also on money supply and interest rates. The findings also revealed that there is a positive relationship between money supply and government bonds yield rates and money supply and exchange rates.
Appears in Collections:Theses and Dissertations

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