Monetary policy in Tanzania: Looking back on 10-years of BoT and IGC contributions

Synthesis paper State

This paper synthesises the International Growth Centre’s work on monetary policy in Tanzania during its 10 years of involvement in the region, placing it in the context of the wider literature on the topic. It begins with an overview of the primary debates around the theory and practice of monetary policy in sub-Saharan Africa since independence, including recent efforts to modernise operational frameworks. It then describes the Bank of Tanzania’s own path to relatively low and stable inflation using money supply targeting, and its ongoing efforts to transition to inflation targeting. It then turns to a discussion of the papers by International Growth Centre authors that have contributed to Tanzania’s monetary policy landscape. It concludes with a discussion of avenues for future research.