Mobile Money,Monetary Policy And Inflation Dynamics In Uganda

This study investigates the effect of the mobile money technology on inflation dynamics in Uganda using macroeconomic data from July 2011 when the central bank of Uganda(BOU)adopted inflation targeting-lite as a monetary policy mechanism,to December 2018.We construct a monetary model for a small open economy to represent Uganda and generate a proxy for mobile money using balances held on the accounts of mobile money users and aggregate demand deposits.This study was conducted using the Structural Vector Autoregressive approach.Our findings suggest that the impact of mobile money technology on monetary policy and inflation dynamics is in line with the objectives of the Central bank of Uganda.