The Effect of Financial Inclusion on Inflation: The Case of Ethiopia
| dc.contributor.advisor | Jemberu Lulie (PhD) | |
| dc.contributor.author | Gebe Yemataw Gzaw | |
| dc.date.accessioned | 2025-03-06T14:01:08Z | |
| dc.date.available | 2025-03-06T14:01:08Z | |
| dc.date.issued | 2024-07-02 | |
| dc.description.abstract | Currently,financial inclusion is receiving significant attention in policy circles due to its role in fostering national development and managing inflation through effectivemonetary policy transmission in the economy. This study focuses on analyzing how financial inclusion impact inflation levels in Ethiopia. Both long and short-run error correction time series model were estimated in the datasets spanning from 2010Q3 to 2023Q2. The results indicated that an increased in financial inclusion throughits measurements i.e. number of financial access points, per 100,000 persons and utilization of savings account per 1000 adults, led to a reduction in inflation by encouraging individuals to use formal financial systems by promoting efficient monetary transmission channel in the entire economy. Additionally, variables exchange rate and money supply demonstrated a positive impact on inflation levels. To effectively manage inflation, predict price movements in the economy, and make informed decisions, financial policymakers should prioritize expanding financial inclusion by increasing access points and offering suitable and affordable financial products and services specifically targeting the excluded and underserved segments of society. Monitoring broad money and exchange rates are also crucial, as they have significant effects on prices. | |
| dc.identifier.uri | https://etd.aau.edu.et/handle/123456789/4929 | |
| dc.language.iso | en | |
| dc.publisher | A.A.U | |
| dc.title | The Effect of Financial Inclusion on Inflation: The Case of Ethiopia | |
| dc.type | Thesis |