Inflation Dynamics in the Dominican Republic

WPIEA0292004 Image
Price:  $15.00

Author/Editor: Olumuyiwa Adedeji, Oral Williams
Release Date: © February, 2004
ISBN : 978-1-45184-483-2
Stock #: WPIEA0292004
English
Stock Status: Available

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Description

This paper investigates the determinants of inflation in the Dominican Republic during 1991-2002, a period characterized by remarkable macroeconomic stability and growth. By developing a parsimonious and empirically stable error-correction model using quarterly observations, the paper finds that inflation is explained by changes in monetary aggregates, real output, foreign inflation, and the exchange rate. Long-run relationships in the money and traded-goods markets are found to exist, but only the disequilibrium from the money market exerts a significant impact on inflation.

Taxonomy

Economic policy , Inflation , Monetary policy




More publications in this series: Working Papers


More publications by: Olumuyiwa Adedeji ; Oral Williams