This book analyzes evolution of monetary policy in Rwanda since it was first implemented by the National Bank of Rwanda in 1964 when the bank was established. It contributes to the understanding of monetary policy which is formulation and implementation in different stages of development of a financial system that comprises the financial market (money market and capital market), financial intermediaries such as commercial banks, and the financial sector infrastructures such as payment systems and the credit reference bureau. The book breaks down applied empirical research on the assessment of key assumptions of a monetary targeting framework, namely the stability of money multiplier and money demand using econometrics of time series, through a number of case studies. Presenting a detailed empirical analysis of the monetary transmission mechanism, one of the most analyzed topics in central banks in advanced economies, this book is a valuable read for central bankers and other researchers of monetary policy, particularly in developing economies.

About the Author

Thomas Kigabo Rusuhuzwa is Economist with over 15 years’ expertise in economic policy formulation and implementation both in Rwanda and in the East African Community (EAC). He has extensive experience in economic research and analysis, first as Chief Economist of the National Bank of Rwanda (Central Bank) and then as Researcher and Academic. He is currently Associate Professor at the College of Business, University of Rwanda, and Chief Economist and Director in Charge of monetary policy, research, and statistics at the National Bank of Rwanda.

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