This paper examines the impact of economic uncertainty on money demand stability in Uganda during financial liberalization. First, an economic uncertainty index is created using the Generalized autoregressive conditional heteroscedasticity  method to measure uncertainty. Secondly, the Autoregressive Distributed Lag  methodology is used to estimate three risk-augmented monetary aggregates: base money, broad money  and broad money . The results show that economic uncertainty has no effect on real base money and real broad money  in the short run; but has a negative effect on real broad money . However, economic uncertainty negatively affects all monetary aggregates after one quarter. This is because economic agents diversify their portfolio from just holding money, into other forms like: long term accounts; foreign accounts; treasury bills and bonds; property; mortgages and land. The three money demand balances are also stable.

Uganda has recently pursued expansionary fiscal policies, driven by the desire to improve the country's infrastructure, increase the production of assets, and facilitate accelerated growth. Nevertheless, providing more resources for capital development in line with the country development aspirations alone will not necessarily translate in optimal infrastructure investments. A question that arises is, what comes first: Is it to invest in the effort to establish effective systems for managing public investment in order to yield high returns or should financing these investments precede capacity challenges. Using a rich dataset of public sector projects defined by project, financing mix, sector etc; the paper carries out project absorptive capacity and overall fiscal trend analysis to ascertain whether budgeted projects translated to intended outturns. It is found that weak Public Investment capacity has led to less than budgeted public investment outturn which has reduced intended fiscal policy impact. As such, for Uganda to achieve its fiscal objectives there is need to balance its expansionary fiscal policies with the ability to absorb fiscal resources.

The study employed the accounting approach to fiscal policy consistency to analyse the sustainability of Uganda's fiscal policy. The deficits were calculated from the financing side by considering increases in liabilities of the consolidated government. To assess whether the deficits have been compatible with other macroeconomic targets, the financeable deficit is derived and compared with the calculated actual deficits. The results show that the consolidated deficit is consistent with attainment of target outcomes for other macroeconomic variables, most notably inflation and gross domestic product growth rates. However, the inflation target has been achieved at the cost of an unsustainable domestic debt.

Many money demand studies have been carried out on Uganda, however, these studies perceive and incorporate exchange rate as a linear determinant of real money demand. Indeed, exchange rate may have asymmetric effects on real money demand; with exchange rate appreciation having different effects from exchange rate depreciation. Therefore, this is the first study to estimate exchange rate asymmetries in Uganda, for the period 2008Q3 and 2018Q4. The study uses both the linear ARDL and non-linear ARDL methodologies to accomplish its goal. This is also done by incorporating an economic uncertainty index, which is critical, especially in light of the novel global coronavirus pandemic, that has disrupted trade, movement and supply chains. The error correction terms of both models are negative and significant, with the one of the non-linear ARDL twice as much as that of the linear ARDL. Indeed, the study confirms the existence of exchange rate asymmetries on Uganda’s real money demand. In the linear ARDL model, exchange rate has a positive effect in the long run but a negative result in the short run. On one hand, the non-linear ARDL model reveals that an exchange rate depreciation of the Uganda Shillings negatively affects real money demand in the short run. On the other hand, an exchange rate appreciation positively effects real money demand. Notably, economic uncertainty has insignificant effects in both models, except for its lags in the non-linear model. The implication of these findings is that macro-economic policy management in Uganda should be cognizant of these asymmetric effects of exchange rate, for effective planning, policy and implementation.

The importance of cooperatives as an appropriate mechanism to address productivity challenges and drive Uganda’s economy for socio-economic transformation is commonly advanced. However, the discussion and efforts on how this should be achieved are weak. Efforts that have been undertaken by the Government, Private players, Civil Society and Development Partners have not yielded much to unlock the potential of the cooperatives in fostering development, enhancing production, productivity, and socio-economic transformation. This is attributed to weaknesses of the prerequisites necessary for the vibrancy of cooperatives namely the: culture of cooperation and trust among cooperators; legal, policy, and regulatory framework for cooperatives; cooperatives’ enabling institutions; prevailing socio-economic environment; and the political economy. This paper uses a multi-dimensional methodology that includes learning from literature; case study analysis; expert-focused interviews; field studies, and; survey questionnaire administration of various types of cooperatives. To this end, the paper defines a framework under which Uganda should strengthen and sustainably regulate its cooperative movement to unlock its potential to drive its socio-economic transformation. In particular, a novel cooperatives’ viability condition in a liberalized market is developed.