Sources of Inflation in Sub-Saharan Africa

WPIEA2007032 Image
Price:  $18.00

Author/Editor: Shanaka J. Peiris, Régis Barnichon
Release Date: © February, 2007
ISBN : 978-1-45186-596-7
Stock #: WPIEA2007032
Stock Status: Available

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This paper explores the sources of inflation in Sub-Saharan Africa by examining the relationship between inflation, the output gap, and the real money gap. Using heterogeneous panel cointegration estimation techniques, we estimate cointegrating vectors for the production function and the real money demand function to recover the structural output and money gaps for seventeen African countries. The central finding is that both gaps contain significant information regarding the evolution of inflation, albeit with a larger role played by the money gap. There is no significant evidence of asymmetry in the relationship.


Demand for money , Economic policy , Inflation , Monetary policy

More publications in this series: Working Papers

More publications by: Shanaka J. Peiris ; Régis Barnichon