Domestic and External Drivers of Inflation: The Gambia
Selected Issues Papers, February 15, 2024
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- Domestic and External Drivers of Inflation: The Gambia
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Bibliographic details
- Authors: Jean-Claude Nachega, Glen Kwende, Laurent Kemoe, Fidel A Márquez Barroeta
- Published: February 15, 2024
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798400267796.018
Key findings and long-term drivers
- Study period: 2014-2023.
- Decisive long-term roles identified:
- Global prices of commodities: food, oil, and fertilizer.
- The exchange rate.
- The domestic output gap.
Short-run inflation dynamics
- Short-run drivers highlighted:
- Global food price movements.
- Second-round effects of changes in food prices.
- Second-round effects of changes in the output gap.
Exchange rate passthrough (ERPT)
- Evidence of an asymmetric ERPT to domestic prices.
- The size of currency depreciation matters for inflation dynamics.
Monetary policy implications
- Monetary policy can tame inflation in the short run provided the monetary policy rate is adjusted rapidly and boldly.
Content in this bundle
- Sipea2024004