This thesis addresses the issue of the existence of a causal relationship between the change in the food component of the consumer price index and change in the money supply (money base and M1) by using monthly Canadian data from January 1968 to March 1997. A bivariate vector autoregressive (VAR) model is used to describe the relationship between money supply and food price on the basis of identifying the two conditions that the three series are first difference stationary series and the money stock and price series are not cointegrated. Saunders' lag order selection criterion developed from Akaikes final prediction error (FPE), and Hsiao's lag selection procedure are used to identify the order of lags of each variable in VAR model. The models perform well through all diagnostic checks. All hypotheses are tested by using the likelihood ratio statistic and the chi2-statistic. The Granger test of causality is discussed and implemented in this research. By comparing the causality results of the seasonally adjusted series with those of seasonally unadjusted series we find that they are very sensitive to the seasonal adjustment of the series. For the seasonally adjusted series there is no relationship between money base (MB) and the food component of the consumer price index (FCPI) and there is a unidirectional causal relationship between M1 and FCPI (from M1 to FCPI). But for the seasonally unadjusted series there is a feedback relationship between M1 and FCPI and there is a unidirectional flow from MB to FCPI. The difference of the results is consistent with the findings of Sargent and other writers.

Societies have, since time immemorial, traded real goods and services for expectations of goods and services in some future. These expectations have been associated with tangible and, lately, intangible property - which is generally called money. From the crude quantity theory of money, the purchasing power of a monetary unit is given as 1/ P = T/(Mv). P is the price of the traded goods and services T, M is the total money supply and its turnover rate is v. The total money supply M is dominated by bank credit. In the South African law (and elsewhere) the judicial recognition given to bank credit (1) as money seems to have happened as an unintended side-effect to accepting cheques as delivery vehicles in a cash transfer without any tangible money moving from the transferor to the transferee. In payment of money, the law of property and the law of contract overlap and become inseparable. Both the English and South African laws define payment as performance of a preceding duty. The Supreme Court of Appeal, in the Vereins- und Westbank case seems to have declared an abstract transfer of ownership of money to be payment even though no preceding duty to pay was found. The profit of a financial investment is called interest and is calculated from a simple or compound interest formula. Despite medieval legal, theological and ethical objections, neither is illegal in the South African positive law. The last remnant of the medieval protection of a guilty debtor (often the ruler) at the expense of an innocent creditor is the in duplum rule. This is particularly obnoxious during modern rampant inflation that was unknown and could not be predicted when only metallistic money was in use. The influence of the in duplum rule is being limited by recent restrictive judgments in South Africa and in Zimbabwe. In South Africa, the Government has a constitutional duty to ensure that its subjects are not deprived of property. Specifically, the Constitution prescribes in Section 224(1) that the South African Reserve Bank must 'protect the value of the currency'. It is shown that the recent Reserve Bank policies, unless urgently modified, are in conflict with the publicly promised inflation rate of no greater than 6%. The exchange rates depend fundamentally on the price levels of the traded or tradable goods and services in the respective economies. This leads to the concept of purchasing power parity, which is most accurately reflected in the relationship between interest rates in different states and their relative foreign exchange depreciation rates. It is submitted that the South African Exchange Control Regulations have outlived their usefulness (if ever they had any) and are unconstitutional - at least in so far as they interfere with the South African Reserve Bank's obligation to pursue its primary object 'independently and without fear'. In the main, the South African Courts have applied restrictive interpretation to the Exchange Control Regulations and they have justifiably ignored the public international law obligation of the Republic to recognise the Exchange Control Regulations of fellow IMF members extraterritorially. (1) To money related claims on banks - see the body of the thesis for the two-creditor-two-debtor legal aspects in the 'bank credit'. / Thesis (LL.D)-University of Durban-Westville, 2002.

A stable money demand function and exogeneity of prices is at the core of planning and implementing a monetary policy of monetary targets. This thesis examines both the stability of M2 money demand and price exogeneity in Rwanda for the years 1980 to 2000. We estimate and test the elasticities of the determinants of Rwandan money demand function. We include in this demand function those variables which economic theory indicates must be part of any empirical investigation of money demand. All coefficients had the signs as required by economic theory. We estimate the money demand function for Rwanda using cointegration analysis and an error correction mechanism. The results show real income, prices and M2 to be cointegrated. We employ three tests to show that the estimated demand function for Rwanda is stable. We then test the second requirement for coherence in monetary aggregate targeting that money determines prices. The results show that prices are exogenous to money. But before we can definitely conclude that an inflation targeting regime is feasible from monetary policy perspective, we point out that future research on this important topic must account for exchange rate movements, measure permanent income and specify interest rate changes correctly. / Thesis (M.A.)-University of KwaZulu-Natal, Pietermaritzburg, 2005.

A stable money demand function is the essence of planning and implementing monetary policy. This thesis explores the stability of the M2 money demand function in Uganda for the period 1980-2002. We estimate and interpret the elasticities of the determinants of the money demand function. After analyzing the dynamics of money demand determinants, the variables crucial to money demand estimation in this thesis were established as being: real income, the nominal rate of interest on Treasury bills, the actual rate of inflation and the change in the exchange rate. All variables had the correct signs as required by economic theory, where real income was found to be positive whilst the nominal rates of interest on Treasury bills, the actual rate of inflation and the change in the exchange rate all have negative signs. We estimate the money demand function for Uganda, using cointegration analysis and an error correction mechanism (ECM) on quarterly data over the sample period 1980-2002. The results from the Johansen and Juselius (1990) cointegration test suggest that real income, the nominal interest rates on Treasury bills and real M2, are cointegrated. The results of the error correction mechanism suggest that in spite of major policy reforms in the years 1987 and 1993 such as the introduction of new financial instruments, and liberalization of the financial system, the estimated money demand function for Uganda is stable only in one time period 1994-2002 that is after major policy reforms. The results of the study show that M2 is a viable monetary policy tool that could be used as an intermediate target to stimulate economic activity in Uganda. We also conclude that the feasible approach for conducting monetary policy in Uganda is to adopt an inflationary targeting regime. However, monetary policy might continue to benefit from other economic indicators by monitoring the impacts of changes in interest rates and the change in exchange rates on real money demand in Uganda. / Thesis (M.A.)-University of KwaZulu-Natal, Pietermaritzburg, 2004.

No abstract available. / Thesis (M.Comm.)-University of Natal, Pietermaritzburg, 1998.

In recent decades, the international community has made a concerted effort to develop the international Anti-Money Laundering Standards (AMLSs) and enhance their implementation at a national level. It is submitted that the AMLSs serve various laudable aims and States should adequately implement those standards. In fact, most States, including Vietnam, have been striving for the highest level of compliance with the AMLSs. This thesis suggests that external pressure and State socialization has compelled developing States to implement and comply with the international AMLSs, and Vietnam is an obvious case study. This thesis examines concisely the development and underlying rationales of a number of key categories of international AMLSs, and the difference in national implementation of each category. The implementation of such multifaceted standards in a transitional State, like Vietnam, requires substantial legal and administrative reform, which often faces numerous domestic hurdles. The examination of Vietnamese AML legislation has revealed that while significant deficiencies remain, certain categories of AMLSs have been transformed wholesale into Vietnamese law. As a part of the objectives of this study, suggestions for law reform have been made to close the gaps between the AML laws of Vietnam and the international standards. It is likely that Vietnam, within a short time, will revise the laws in order to obtain a better degree of compliance. However, given the political, economic and legal factors of Vietnam, this thesis argues that the enforcement of the laws in practice will be still limited. In other words, in the near future Vietnam can achieve what appears to be a high level of compliance with the international AMLSs, but only on paper.

Women’s subordination in marital relations is a problematic issue causing socio-economic imbalance between spouses. These issues are found within the system of Uganda’s patriarchal society. Mobile money (m-money) is a service that entered the Ugandan market in 2009 that allows transferring and withdrawing money and paying bills with your cellphone without being connected to a formal bank. Earlier research shows positive impact of m-money use for women’s entrepreneurship in a male-privileged society. These realities render interest towards investigating how m-money effects women and if it has any impact on their self esteem in their marital relation. The study aims to understand the effect of women’s use of m-money in a marital relation. The field study was carried out in Mbarara using interviews and observations to approach the issue. Ugandan women have a lower position within the marital relation as well as in society in general since it is the man who heads of the family. The study reveals an existing lack of trust between spouses, resulting in the exclusion of one another from their individual finances. This lack of trust becomes an impediment of mutual support within the marriage. Furthermore the study shows that women from a higher strata use m-money as a security line of income and gives leeway to meet both traditional expectations such as care taking of children and modern expectations to be employed within the formal sector. The lower strata of women who use m-money tend to protect the money from their husbands who have different priorities than their wives. Through m-money women are given a tool allowing them to circumvent economic confrontations between the spouses and the societal hierarchal structures. The economic security creates a reality where women are less vulnerable because of their independence. The gained independence can however be deemed as a less bad alternative to dependence as it gives them a stronger foundation to manage the combination of the above-mentioned traditional and modern expectations within society.

Part I deals with the estimation of money demand functions. Several non-structural interpretations of the conventionally estimated functions are surveyed and discussed (Chapter 1). An application to Italian data is then presented, focusing on two such interpretations. First (Chapter 2), the role of expectations in determining money demand behaviour is assessed. Since monetary policy regimes have a direct effect on the time-series properties of interest rates, the identification of clear regime changes may provide a powerful test of forward-looking models of money demand. An expectations model is constructed, which is stable in the face of the Italian monetary policy regime change in 1970, when traditional backward-looking money demand functions show remarkable instability. Second (Chapter 3), the existence of multiple long-run relations among the variables relevant to money demand is shown to create problems for the interpretation of single-equation estimates. To obtain a satisfactory specification of the long-run relations and the short-run dynamics of the system around equilibrium, a sequential procedure is devised and applied. In Part II, the controversy between "real" and "monetary" theories of fluctuations is examined (Chapter 4). A "monetary" equilibrium model of the cycle is constructed, extending the original Lucas "island" framework to allow for a powerful role for stabilization policy. The implications of alternative monetary policy regimes are derived and tested on U.S. data, comparing two periods (1922-1940 and 1952-1968) with a different policy stance. Chapter 5 investigates the relative importance of the "money" and "credit" channels of monetary transmission for Italy in the 1982-1994 period, using a structural VAR methodology. Monetary policy is effective, though not through a "credit channel", and independent disturbances to credit supply have sizeable real effects. In Chapter 6 the focus is shifted to anticipated fiscal policy actions and their effect on consumption. A long series of pre-announced income tax changes is examined for the U.K. Consumption reacts to such fiscally-induced disposable income changes only at the implementation dates.

The policy instrument of central banks everywhere has usually been a short-term nominal interest rate. This means that central banks have adopted operating procedures whose goal has been to produce some desired level of money market interest rates. Although the Bank of England was in many respects the pioneer of these operating procedures, theoretical and empirical attention has focused almost exclusively on the Federal Reserve. This thesis aims to redress this imbalance by examining - in detail - the sterling money market and the operations of the Bank of England. This task is carried out in two parts. Part I reviews central banks' use of the interest instrument more generally, beginning with an historical sketch of the evolution of central bank money market operations. This sketch is complemented by a critical discussion of two important concepts relating to such operations, namely interest rate smoothing and money base control. A simple analytical model is then developed to illustrate the determination of money market interest rates by the central bank. Part II specifically concerns the money market operations of the Bank of England, and their implications for the behaviour of sterling money market interest rates. First, a model of the term structure of money market interest rates is derived. Its predicted behaviour in reaction to a change in the Bank's official rate is then empirically verified. Next, the yield on eligible bills - the Bank's intervention asset - is examined. It is argued that these assets carry an excess liquidity premium, arising from the Bank's constraints on their issue. Finally, an empirical model of the overnight interest rate - the UK equivalent of the federal funds rate - is developed, and the reasons for its volatility are investigated.

Recent research has shown that money substitutes - whether in the form of foreign currency or of more exotic instruments such as privately-issued moneys - are common in developing and transition countries, and have important consequences for macroeconomic and financial sector policy. The aim of this thesis is to advance our theoretical and empirical understanding of the determinants of money substitution in developing and transition economies. We begin in Chapter 1 by addressing the need for a general theoretical framework for the analysis of money substitutes. Reviewing both the classical and the modern theoretical literature on money, we conclude that the Credit theory of money - an ancient but until recently neglected theory which conceives of money as a unilateral financial contract between its issuer and its bearer - is a useful framework for such analysis. In Chapter 2, we undertake an empirical analysis of non-cash settlements (NCS) in Croatia. Using time series econometric analysis, we demonstrate that the instruments used to settle NCS are at least in part substitutes for the national currency, created endogenously by the enterprise sector in response to constraints on their participation in the official monetary and banking system. We turn to the most important form of money substitute in developing and transition countries - foreign currency - in Chapter 3, where we present a new review of the theoretical and empirical literature on dollarisation. In particular, we track the evolution of theoretical models of dollarisation in response to the increasing empirical importance of financial dollarisation relative to currency substitution. In Chapter 4 we undertake an empirical study of the determinants of deposit dollarisation in the two transition economies of Estonia and Lithuania by building and interpreting dynamic, multiple equation, econometric models. We find that a simple, portfolio theoretic account of the dollarisation process furnishes a good explanation, but also that data availability limits the level of analytical detail that this approach can attain.