Financial liberalization in Uganda leads to stable money demand and inflation control.
The study looked at how money, prices, income, and interest rates in Uganda were related from 1982 to 1998. Despite financial market changes in the 1990s, a stable connection was found between real money, income, and interest rates. The results showed that income was similar, interest rates had a big impact, capital could move easily, assets could be swapped, and both local and foreign factors affected inflation in Uganda.