Inflation Dynamics in the Dominican Republic

 
Author/Editor: Williams, Oral ; Adedeji, Olumuyiwa
 
Publication Date: February 01, 2004
 
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Summary: 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.
 
Series: Working Paper No. 04/29
Subject(s): Inflation | Dominican Republic | Economic models

Author's Keyword(s): Inflation | Cointegration | Error-Correction
 
English
Publication Date: February 01, 2004
ISBN/ISSN: 1934-7073 Format: Paper
Stock No: WPIEA0292004 Pages: 20
Price:
US$15.00 (Academic Rate:
US$15.00 )
 
 
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