Relationship between inflation and interest rates in Swaziland revisited
-
Author(s)Lindiwe Catherine Khumalo , Emmanuel Mutambara ,Akwesi Assensoh-KoduaLink to ORCID Index: https://orcid.org/0000-0002-1669-6044
-
DOIhttp://dx.doi.org/10.21511/bbs.12(4-1).2017.10
-
Article InfoVolume 12 2017, Issue #4, pp. 218-226
- Cited by
- 1834 Views
-
1019 Downloads
This work is licensed under a
Creative Commons Attribution-NonCommercial 4.0 International License
The stability of economies all over the world over is largely a function of inflation and interest rates. Over the past two decades, Swaziland’s economy experienced increasing inflation and interest rates with the blame leveled against the absolute Monarchy’s inability to manage the economy. In particular, the period of 2010 to 2014 was the hardest hit because of increasing poverty levels. The purpose of the study was therefore to assess the relationship between inflation and interest rates in the context of Swaziland with a view to constructing fiscal and monetary policies capable of driving an efficient economy going forward. The study employed a confirmatory and quantitative approach based on a review of secondary data over the period. The source and description of data included quarterly based data within the 2010–2014 period comprising information on interest rate, gross domestic product and inflation figures from the Central Bank of Swaziland, the national library, and the Central Statistical Department of Swaziland. A descriptive approach, using Microsoft excel, was used to analyze the data. The study findings showed that there was positive relationship between interest rates and inflation. Recommendations were that, Swaziland could craft appropriate fiscal and monetary policies towards controlling the prevailing economic challenges despite the peculiar socio-political nature where the absolute Monarchy holds executive authority and accountability.
- Keywords
-
JEL Classification (Paper profile tab)E31, E43
-
References32
-
Tables0
-
Figures1
-
- Figure 1. Relationship between inflation rate and interest rates
-
- Ayub, G., Rehman, N. U., Iqbal, M., Zaman, Q., & Atif, M. (2014). Relationship between Inflation and Interest Rate: Evidence from Pakistan. Research Journal of Recent Sciences, 3(4), 51-55.
- Chowdhury, L. S., & Afzal, M. N. (2015). The Effectiveness of Monetary Policy and Fiscal Policy in Bangladesh. Journal of Applied Business and Economics, 17(1), 78-85.
- Desta, S. B. (2016). Inflation and the Role of Macroeconomic Policy in Ethiopia. Journal of Economics and Sustainable Development, 7(7), 71-82.
- Geetha, C., Mohidin, R., Chandran, V. V., & Chong, V. (2011). The relationship between inflation Growth in Nigeria. The Empirical Economics Letters, 1100-1115.
- International Monetary Fund Country Report (2015). Kingdom of Swaziland: 2015 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Kingdom of Swaziland. Washington D.C. Press Release No 15/556.
- Islam, R., Ghani, A. B. A., Mahyudin, E., & Manickam, N. (2017). Determinants of Factors Affecting Inflation in Malaysia. International Journal of Economics and Financial Issues, 7(2), 355-364.
- Jelilov, G., Abdulrahman, S., & Işık A. (2015). The Impact of Tax Reforms and Economic. The Empirical Economics Letters, 15(5), 436-443.
- Kanjumba, F. W., Njuguna, A., & Achoki, G. (2016). Economic Factors Influence on Funding of the Supply-Side of Housing in Kenya: Case Study Nairobi. International Journal of Business and Management, 11(10), 194-205.
- Khalid, A. M., & Muhammad, K. A. (2011). Fiscal deficit and its impact on inflation, causality and cointegration: the experience of Pakistan (1960–2010). Far East Journal of psychology and business, 5(3), 105-504.
- Khan, W. A., & Satter, A. (2014). Impact of Interest Rate Changes on the Profitability of four Major Commercial Banks in Pakistan. International Journal of Accounting and Financial Reporting, 4(1), 142-154.
- Lawal, I. S. C. (2013). Data collection techniques a guide for researchers in humanities and education. International Research Journal of Computer Science and Information Systems, 2(3), 40-44.
- Lincoln, Y. S., & Guba, E. G. (1985). Naturalistic inquiry. Beverly Hills, CA: Sage.
- Mazaheri, N. (2013). The Saudi monarchy and economic familyism in an era of business environment reforms. Business and Politics Journal, 15(3), 295-321.
- Mehrara, M., & Sujoudi, A. (2015). The Relationship between Money, Government Spending and Inflation in the Iranian Economy. International Letters of Social and Humanistic Sciences, 51(1), 89-94.
- Mueller, C. E., & Hart, C. O. (2010). Effective Use of Secondary Data Analysis in Gifted Education Research: Opportunities and Challenges. Gifted Children, 4(2), 6-11.
- Murwirapachena, G., Choga, I., Maredza, A., & Mavetera, N. (2013). Fiscal Policy and Unemployment in South Africa: 1980–2010. Mediterranean Journal of Social Sciences, 4(6).
- Ng’etich, J. C., & Wanjau, K. (2011). The effects of interest rate spread on the level of non-performing assets: A case of commercial banks in Kenya. International Journal of Business and Public Management, 1(1), 58-65.
- Noble, H., & Smith, J. (2015). Issues of validity and reliability in qualitative research. Evidence Based Nursing, 18(2), 34-35.
- Ogege, S., & Shiro, A. A. (2012). The Dynamics of Monetary and Fiscal Policy as a Tool for Economic Growth: Evidence from Nigeria. Journal of Management and Sustainability, 2(2).
- Ojima, D., & Emerenini, F. M. (2015). Impact of Interest Rate on Investment in Nigeria. Developing Country Studies, 5(3), 103-110.
- Osuala, A. E., & Jones, E. (2014). Empirical Analysis of the Impact of Fiscal Policy on Economic Growth of Nigeria. International Journal of Economics and Finance, 6(6).
- Peersman, G. (2014). Overview: Data Collection and Analysis Methods in Impact Evaluation. Methodological Briefs: Impact Evaluation, 10. UNICEF Office of Research, Florence.
- Ramlan, H. & Suhaimi, M. S. I. B (2017). The Relationship between Interest Rates and Inflation toward the Economic Growth in Malaysia. Journal of Humanities, Language, Culture and Business, 1(1), 55-63.
- Semuel, H., & Nurina, S. (2015). Analysis of the Effect of Inflation, Interest Rates, and Exchange Rates on Gross Domestic Product (GDP) in Indonesia. Proceedings of the International Conference on Global Business, Economics, Finance and Social Sciences. Bangkok, Thailand, 20-22.
- Suyuan, W. L., & Khurshid, A. (2015). The effect of interest rate on investment; Empirical evidence of Jiangsu Province, China. Journal of International Studies, 8(1), 81-90.
- Swaziland Central Statistical Office (2014).
- Swaziland Public Service Commission (2014).
- Teddlie, C., & Yu, F. (2007). Mixed Methods Sampling A Typology With Examples. Journal of Mixed Methods Research, 1(1).
- The Standard Bank Report (2017). South African Economy in 2017: Shallow Cycles vs. Optimism that Politics will improve in 2018. February 2017 Report on the Economy. Johannesburg. South Africa
- The World Economic Forum (2017). The Inclusive Growth and Development Report 2017. January 2017. Geneva, Switzerland.
- Umaru, A., & Zubairu, A. A. (2012). Effect of Inflation on the Growth and Development of the Nigerian Economy (An Empirical Analysis). International Journal of Business and Social Science, 3(10).
- Yin, R. K. (2009). Case study research Design and methods (4th ed.). Thousand Oaks, CA: Sage.
-
Impact on poverty and income inequality in Malaysia’s economic growth
Rabiul Islam 
,
Ahmad Bashawir Abdul Ghani ,
Irwanshah Zainal Abidin ,
Jeya Malar Rayaiappan
doi: http://dx.doi.org/10.21511/ppm.15(1).2017.05
Problems and Perspectives in Management Volume 15, 2017 Issue #1 pp. 55-62 Views: 11918 Downloads: 5693 TO CITE АНОТАЦІЯPoverty and income inequality are extreme issues that still exist in Malaysia. Any rise in poverty and income inequality definitely affect economic growth. There are many great efforts taken by the government of Malaysia to eradicate poverty and to reduce the gap of income inequality which occurs since 1970’s. The incidence of poverty and income inequality is higher in rural areas compared to urban areas. This paper is mainly to study the level of poverty and income inequality in Malaysia together with government intervention to develop Malaysia’s economic growth. The research is focused among the working people at Ipoh, Perak. In this paper, questionnaire forms are being distributed to get information regarding the issue of poverty and income inequality. It also looks into the strategies taken by the government of Malaysia to eradicate poverty and income inequality. Few recommendations are given in terms of education policy, financial aid and assistance from government and non-government organization (NGO) to upgrade the standard and quality of living among the poor and lower-income group of people.
-
Impact of inflation on economic growth: evidence from Nigeria
Anthony Olugbenga Adaramola ,
Oluwabunmi Dada
doi: http://dx.doi.org/10.21511/imfi.17(2).2020.01
Investment Management and Financial Innovations Volume 17, 2020 Issue #2 pp. 1-13 Views: 9143 Downloads: 5471 TO CITE АНОТАЦІЯIn an attempt to examine the influence of inflation on the growth prospects of the Nigerian economy, the study employs the autoregressive distributed lag on the selected variables, i.e. real gross domestic product (GDP), inflation rate, interest rate, exchange rate, degree of economy`s openness, money supply, and government consumption expenditures for the period 1980–2018. The study findings indicate that inflation and real exchange rate exert a significant negative impact on economic growth, while interest rate and money supply indicate a positive and significant impact on economic growth. Other variables in the model depict no influence on the economic growth of Nigeria. The causality result shows the unidirectional relationships between interest rate, exchange rate, government consumption expenditures and gross domestic product. However, inflation and the degree of openness show no causal relationship with gross domestic product. As a result, the study recommends that a more pragmatic effort is needed by the monetary authorities to target the inflation vigorously to prevent its adverse effect by ensuring a tolerable rate that would stimulate the economic growth of Nigeria.
-
Formalization of the impact of imbalances in the movement of financial resources on economic growth of countries in Central and Eastern Europe
Serhiy Kozmenko ,
Maxim Korneyev
doi: http://dx.doi.org/10.21511/afc.01(1).2017.06
Accounting and Financial Control Volume 1, 2017 Issue #1 pp. 48-58 Views: 7876 Downloads: 1375 TO CITEThe article deals with the impact of financialization on economic growth in countries of Central and Eastern Europe. It determinesthe impact of imbalances in the movement of financial resources caused by financialization on economic growth of these countries. It proves that the implementation of measures aimed at increasing the openness of the economy and maintaining solvent demand have a positive impact on economic growth of the surveyed countries in the long run. It also proves the importance of developing a set of measures of strategic nature regulating imbalances in the movement of financial resources caused by financialization.
