Determinants of the Tanzanian money supply (June 1996 – 1976)

Since the financial year 1971/72, money supply is planned in Tanzania. The annual plans set a target growth rate of about 10 percent, but the actual growth rate of money supply by far exceed the planned targets. This is probably due to the fact the forces which affect the behaviour of the Tanzania money supply are not known and/or planned. The dissertation investigates those determinants. We firstly survey the ten years 1966-76 experience and detect the sources of the Tanzanian money supply. We thence analyse theoretically the determinants of those sources. We then test them, using the technique of least squares. We attempt four mathematical models, trying either to get the best equation or solve some econometric problems. Most of the assumptions advanced have been confirmed by the empirical analysis.