One of the most important goals for all countries is to maintain sustainable growth with low inflation. As a result, each government is fighting high inflation. To stabilize the rate of inflation, it is interesting to study its different sources and monetary policy has one. This study has two objectives: the first objective is to analyze the effect of monetary policy on inflation and the second objective is to examine the nature of the relationship between money supply and inflation in Cameroon. This study uses annual time series data from 1980 to 2016. Johansen's cointegration test was used to find the relationship between the money supply and inflation. The ARDL estimation method was used to analyze the effect of the money supply on inflation in Cameroon and the Toda and Yamamoto's causality test was used to test the causality between money supply and inflation. The results show that, there is a long-run equilibrium relationship between the money supply and inflation; the money supply has a positive and significant effect on inflation in Cameroon and there is one-way causality from money supply to inflation. This study shows that inflation has a monetary source in Cameroon. Thus, monetary policy should be planned to maintain price stability by controlling the growth of the money supply in the Cameroonian economy.
This article seeks to study the effects of the development of the capital market and foreign direct investment (FDI) in the entrepreneurial process and economic growth. The technical methods used in this study are the panel-based dynamic estimation method of the Generalized Method of Moments (GMM) and the Calderon-Rossell model, in order to assess the relative impact of the development of capital markets on the entrepreneurial process in the CEMAC zone. The results show that capital market and capitalization initiatives can lead to an entrepreneurial process and economic growth in the CEMAC region. In addition, the incidence of corruption, the rule of law and the quality of the regulatory framework are identified as the most important institutional frameworks that determine the attractiveness of CEMAC countries to the inflow of FDI.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.