BIKAI, J. Landry and BATOUMEN M., Hardit and FOSSOUO, Armand (2016): Determinants of inflation in CEMAC: the role of money.
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Abstract
The aim of this study is to investigate the causes of inflation in CEMAC, with a particular attention to the monetary dimension. Using a Panel Vector Autoregressive (PVAR) approach on CEMAC countries and data from 1990 to 2014, we show that money supply and imported inflation are the two main sources of inflation in CEMAC countries. These factors seem to explain inflation better than oil prices, budget balance and output gap. Specifically, the results show that money supply causes about 24% of inflation’s variation while imported inflation explains about 6% of inflation’s fluctuations. However, an important inflation’s inertia is observed (64% in mean), enlightening some structural problems, in particular, the slowness of expectations adjustment of agents in CEMAC.
| Item Type: | MPRA Paper |
|---|---|
| Original Title: | Determinants of inflation in CEMAC: the role of money |
| Language: | English |
| Keywords: | Panel VAR, Inflation, Monetary Policy, Central Bank Policy |
| Subjects: | C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C33 - Panel Data Models ; Spatio-temporal Models E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E30 - General E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E52 - Monetary Policy E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E58 - Central Banks and Their Policies |
| Item ID: | 89111 |
| Depositing User: | Dr J. Landry BIKAI |
| Date Deposited: | 24 Sep 2018 08:37 |
| Last Modified: | 27 Sep 2019 05:59 |
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| URI: | https://mpra.ub.uni-muenchen.de/id/eprint/89111 |
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