Monetary Economics - 2174 Words

THE UNIVERSITY OF DODOMA A RESEARCH PROPOSAL ON THE TOPIC Factors influencing Tanzania devaluation policy in its international trade BY NYERERE, LAZARO – T/UDOM/2010/03542 Table of Contents 1. INTRODUCTION 2 1.1. Background Information 2 1.2. Statement of the Problem 3 1.3. Justification of the Study 3 1.4. Overall Objective 4 1.5. Specific Objectives 4 1.6. Research Questions 4 1.7. Significance of the Study 4 2. LITERATURE REVIEW 5 2.1 Exchange rate analysis 5 2.2 The nominal effective exchange rate 6 2.3 The real effective exchange rate 6 3. METHODOLOGY 6 3.1 Methods of Data Collection 6 3.2 Methods of Data Analysis 6 3.2.1 Factors affecting balance of payments 6 RESEARCH BUDGET†¦show more content†¦These developments forced some of the exporters to sell the stocks at a loss, hence jeopardizing the ability to service their bank loans. Furthermore farmers with unsold crop could not find buyers as companies suspended crop purchase operations (BOT, 2010). 1.4. Overall Objective The overall objective of the study will be to analyze factors influencing Tanzania devaluation policy in its international trade. 1.5. Specific Objectives * To identify the major economic sectors connecting Tanzania and the rest of the world. * To analyze the performance of the central bank in the foreign trade negotiations. * To access the welfare changes of the Tanzanians following the success of the policy. 1.6. Research Questions * What are major economic sectors connecting Tanzania and the rest of the world? * What are the performances of the central bank in the foreign trade negotiations? * How will the welfare of Tanzanians be when the devaluation policy successive? 1.7. Significance of the Study The primary significance of the study is to all actors in the devaluation policy in Tanzania. Analysis of the whole system and identifying clearly the challenges will benefit policy makers and implementers in indicating the area of advantage for what should be done to improve the wellbeing of Tanzanians. The other benefitShow MoreRelatedEconomic Variables And Monetary Policy1478 Words   |  6 PagesAs was mentioned above rising in oil prices influence the increase in inflation. And it is big dilemma for monetary policy, because arise a question what should central banks do? Should they tighten monetary policy to correct the effects of oil prices increases and prevent inflation? Or they should take in oil prices increases with easy monetary policy to support growth of output and employment. In this situation, central banks have these two main problems. The point is that central banks can doRead MoreMonetary Policy On Economic Prosperity Essay1679 Words   |  7 Pages MONETARY POLICY CHANNELS BY MARTIN RIITHO MAINA KCA 14/02073 Term Paper submitted to Dr. G. 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