TOPIC OF THE PROJECT WORK DETERMINANTS OF MONEY DEMAND IN ETHIOPIA ECONOMY AFTER 1994.

Abstract

This research aims to investigate the main factor that determine the broad money demand in Ethiopia economy after 1994 NBE (National Bank of Ethiopia) reformation .specifically test of the degree of determination of each dependent and independent variables . For the sake of achieving the objectives of this study The equation of regression generally built around two sets of variables, namely depend variable (broad money demand ) and independent variables ( gross domestic product , inflation rate , exchange rate and interest rate). The main source of data is the quarterly and annual reports of the National Bank of Ethiopia (NBE), MOFED (Minister of Finance and Economics Development) and CSA (Central Statics Authority) which covers the last 20 years from 1994/95 to 2013/2014. The data were analyzed using descriptive and econometric analysis method. The econometric analysis includes empirical and graphical analyses. The major significance of the study, understanding of the major determinants of the money demand and achieving stable money demand function plays a significant role in monetary policy implementation.