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The Zambian economy has been grappling with Balance of Payment (BoP) problems since the mid-1970s. This led the country to resort to seeking support from multilateral institutions and subsequently, the adoption of the IMF’s structural adjustment programmes as a solution. The Monetary Approach to...

Economic theory on trade flows postulates that depreciation does not guarantee an automatic improvement of the Balance of Payment (BoP) unless the Marshall-Lerner (M-L) condition is fulfilled. In this regard, most Sub-Saharan African countries (including Zambia) are still grappling with the...

The aim of this study was to investigate the causal relationship among financial development, trade openness, and economic growth in Zambia from 1965 to 2011. To fully understand this relationship, two measures of financial development were used: broad money and domestic credit to the private...

The study on the relationship between economic growth and inflation has attracted attention world over by researchers and policy makers. A high and sustained economic growth with low and stable inflation is the central objective of most policy makers. However, previous studies on the relationship...

Wagner (1883), predicted that economic growth would be accompanied by an increase in state activity (growth of government Spending). Thus, the causality according to Wagner‟s law is running from economic growth to government spending. This study focuses on how relevant the theory postulated by...

This study has analysed the impact of increasing public debt on Zambia‟s economic growth covering the period 1980 to 2008. For policy implication, the study also analysed the channels through which public debt is said to have an impact on economic growth namely through private investments, public...

While Zambia remains steep in poverty, it is also simultaneously witnessing a large outflow of domestic capital which if, retained and returned would assist in boosting financial resources utilization and improve in social-economical developmental programmes. Capital flight from Zambia was $16...

Trade balance is one of the main factors affecting the balance of payments position. This study examined the relationship between exchange rate and trade balance in Zambia, both in the short run and long run using quarterly data from 1998:1 to 2009:4. The study investigated how trade balance...

The past several decades have witnessed considerable empirical research on the demand for money function due to the vital role this function plays in macroeconomic analysis especially in regard to the formation and transmission of monetary policy. Consequently demand for money functions have been...

There is now consensus that inflation hampers economic and social development. It is therefore important to have a clearly defined and effective framework of inflation control. Since 1992, Zambia has been using monetary targeting as a framework of inflation control. However, the link between...