Inflation Determinants in Paraguay: Cost Push versus Demand Pull Factors
IMF Working Papers, December 1, 2008
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- Inflation Determinants in Paraguay: Cost Push versus Demand Pull Factors
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Bibliographic details
- Authors: Brieuc Monfort, Santiago Peña
- Published: December 1, 2008
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451871289.001
Methodologies and Scope
- Analytical approaches used:
- Mark-up theory of inflation
- Monetary theory of inflation
- Additional analysis:
- Impact of different monetary aggregates
Key Findings on Inflation Dynamics
- Long-run determinants:
- Monetary factors, in particular currency in circulation, play a major role in determining long-run inflation.
- Short-term dynamics:
- Foreign prices, in particular from Brazil, or some food products have a large impact on the short-term dynamics of inflation.
- Other contributing factors:
- Wage indexation may contribute to locking up price increases.
Subjects and Keywords
- Subject: Consumer price indexes, Currencies, Demand for money, Exchange rates, Inflation
- Keywords: core inflation index, inflation dynamics, monetary aggregate, U.S. dollar, WP