Inflation and Monetary Pass-Through in Guinea

 
Author/Editor: Blavy, Rodolphe
 
Publication Date: December 01, 2004
 
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
 
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. 04/223
Subject(s): Inflation | Guinea | Money supply | Consumer prices | Economic models

Author's Keyword(s): Guinea | inflation | money supply | cointegration | error correction model
 
English
Publication Date: December 01, 2004
ISBN/ISSN: 1934-7073 Format: Paper
Stock No: WPIEA2232004 Pages: 19
Price:
US$15.00 (Academic Rate:
US$15.00 )
 
 
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