Suriname: Selected Issues
IMF Staff Country Reports, December 23, 2019
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- Suriname: Selected Issues
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Bibliographic details
- Published: December 23, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513524504.002
Overview
- Paper analyzes exchange rate pass through in Suriname.
- Extends previous studies by estimating exchange rate passthrough using the nominal effective exchange rate in addition to the bilateral exchange rate against the US dollar.
- Notes the importance of the euro due to Suriname's historic connections with the Netherlands and proximity to French Guyana.
- First study to investigate how various subcomponents of the consumer price index respond differently to exchange rate variations for Suriname.
- Pages: 14; Issue: 392; Volume: 2019; Series: Country Report No. 2019/392; ISBN: 9781513524504; ISSN: 1934-7685; DOI: https://doi.org/10.5089/9781513524504.002
Methodology and scope
- Uses the nominal effective exchange rate as well as the bilateral US dollar exchange rate.
- Examines CPI aggregate and various CPI subcomponents.
- Sample periods reported: 1980-2019 and 2000-19.
Key findings
- Cumulative exchange rate passthrough estimates:
- Around 0.4 (0.6) over six months for the entire sample of 1980-2019 (2000-19).
- 0.6 (0.7) over one year for the entire sample of 1980-2019 (2000-19).
- A more systemic analysis indicates that the exchange rate passthrough has been declining and becoming more short-lived in recent years.
- Emphasizes heterogeneous responses across CPI subcomponents to exchange rate variations.
Policy-relevant implications
- Monitoring the nominal effective exchange rate is crucial given the role of the euro in the economy.
- Heterogeneous CPI responses suggest targeted monitoring of price subcomponents when assessing inflation dynamics and monetary policy transmission.
- The decline and shortening duration of passthrough imply that exchange rate shocks may have weaker and more transient effects on headline inflation than in earlier decades.
International Monetary Fund. "Suriname: Selected Issues", IMF Staff Country Reports 2019, 392 (2019), DOI: https://doi.org/10.5089/9781513524504.002
Content in this bundle
- Suriname: Selected Issues; IMF Country Report No. 19/392; November 19, 2019