Description

This paper investigates the factors that affect inflation in the GCC region by examining the inflationary processes in Saudi Arabia and Kuwait. The paper utilizes a model that accounts for foreign factors affecting inflation, such as trading partners' inflation and exchange rate pass-through effect, as well as domestic influences. The analysis concludes that, in the long run, higher inflation in trading partners' countries is the main driving force for inflation in the two countries, with significant but lower contributions from the exchange rate pass-through effect and oil prices. Demand and money supply shocks affect inflation in the short run.

People who purchased this product also purchased

Reforming Government Subsidies in the New Member States of the European Union ($18.00)

Strategic Interactions between an Independent Central Bank and a Myopic Government with Government Debt ($18.00)

Vacation Over: Implications for the Caribbean of Opening U.S.-Cuba Tourism ($18.00)

Taxonomy

Cooperation Council for the Arab States of the Gulf , Economic cooperation , Economic policy , Inflation , International organizations , Monetary policy , Money supply

More publications in this series: Working Papers

More publications by: Maher Hasan ; Hesham Alogeel