Monetary Growth and Exchange Rate Depreciation As Causes of Inflation in African Countries : An Empirical Analysis /

This paper examines the relative importance of monetary growth and exchange rate depreciation as causes of inflation in a sample of 10 Sub-Saharan African countries. Causality tests and impulse response functions derived from vector autoregression (VAR) analysis suggest that both monetary expansion...

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Bibliografski detalji
Glavni autor: Canetti, Elie
Daljnji autori: Greene, Joshua
Format: Žurnal
Jezik:English
Izdano: Washington, D.C. : International Monetary Fund, 1991.
Serija:IMF Working Papers; Working Paper ; No. 1991/067
Online pristup:Full text available on IMF
Opis
Sažetak:This paper examines the relative importance of monetary growth and exchange rate depreciation as causes of inflation in a sample of 10 Sub-Saharan African countries. Causality tests and impulse response functions derived from vector autoregression (VAR) analysis suggest that both monetary expansion and exchange rate adjustments cause inflation in a number of these countries. However, the failure of the tests to attribute the bulk of the variance in inflation in most of the countries to either variable suggests either a problem with the statistical technique or that some other factor--perhaps structural bottlenecks or a measure of overall macroeconomic policy stance incorporating both monetary and exchange rate policy--may be even more important as a determinant of inflation in African countries.
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Opis:1 online resource (49 pages)
Format:Mode of access: Internet
ISSN:1018-5941
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