Inflation in Tanzania Linked to Economic Decline, Urgent Policy Changes Needed.
The study looked at how different economic factors affect Tanzania's economic growth. They used a method called Granger-causality to analyze GDP, inflation, money supply, and government spending. The results showed that high inflation hurts economic growth, while lower money supply leads to less growth. On the other hand, reduced government spending actually boosts economic growth. The study also found that these factors all influence each other in a significant way. This means that policymakers in Tanzania need to consider these factors when making financial decisions to help the economy grow.