Inflation and Monetary Pass-Through in Guinea
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Summary:
The paper analyzes the dynamics of inflation in Guinea during 1992-2003 applying cointegration and error-correction modeling to a bivariate model that includes consumer price and monetary variables. The empirical results, based on quarterly data, confirm the existence of a long-run relationship between money supply and consumer prices. This paper argues further that the pass-through has increased in recent years. Short-term dynamics are shown to accentuate the long-run impact. Impulse response analysis shows that a shock in the money stock will have an increasing impact over two years and will then stabilize at a higher level.
Series:
Working Paper No. 2004/223
Subject:
Consumer price indexes Consumer prices Demand for money Inflation Monetary base Money Prices
English
Publication Date:
December 1, 2004
ISBN/ISSN:
9781451875324/1018-5941
Stock No:
WPIEA2232004
Pages:
20
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