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BANK EFFICIENCY, OWNERSHIP AND MARKET STRUCTURE WHY ARE INTEREST SPREADS SO HIGH IN UGANDA?

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Woodford (2000) has shown that the problem is more complex than fiscal versus monetary dominance. Faithful adherence to an anti-inflation monetary rule may not by itself be sufficient to ensure price stability – because government policy frameworks may engender fiscal expectations that are inconsistent with stable prices. The conclusion from this brief summary of these perspectives from economic theory is that there is no agreed view about the impact of government debt on the long-term interest rates. Future macroeconomic policy choices in a difficult fiscal context will influence interest rates in ways that are hard to predict. Markets...
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BANK EFFICIENCY, OWNERSHIP AND MARKET STRUCTURE WHY ARE INTEREST SPREADS SO HIGH IN UGANDA?

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