Fiscal Dominance and Inflation in the Democratic Republic of the Congo /

This paper examines the fiscal dominance hypothesis in the Democratic Republic of the Congo (DRC) during 1981-2003, using multivariate cointegration analysis and vector errorcorrection modeling. Empirical results point to strong and statistically significant long-run relationships between budget def...

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Hlavní autor: Nachega, Jean-Claude
Médium: Časopis
Jazyk:English
Vydáno: Washington, D.C. : International Monetary Fund, 2005.
Edice:IMF Working Papers; Working Paper ; No. 2005/221
On-line přístup:Full text available on IMF
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Shrnutí:This paper examines the fiscal dominance hypothesis in the Democratic Republic of the Congo (DRC) during 1981-2003, using multivariate cointegration analysis and vector errorcorrection modeling. Empirical results point to strong and statistically significant long-run relationships between budget deficits and seigniorage, and between money creation and inflation. The long-run inflationary impact of budget deficits is robust to the inclusion of output growth or velocity in the inflation and monetary growth equations. The paper offers some policy recommendations for long-term price stability in the DRC.
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Fyzický popis:1 online resource (44 pages)
Médium:Mode of access: Internet
ISSN:1018-5941
Přístup:Electronic access restricted to authorized BRAC University faculty, staff and students