{
  "title": "The Gambia: Selected Issues",
  "publication": "IMF Staff Country Reports, January 18, 2024",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2024/01/18/the-gambia-selected-issues-543902",
  "canonical": "https://www.imf.org/en/publications/cr/issues/2024/01/18/the-gambia-selected-issues-543902",
  "overlayPath": "/en/publications/cr/issues/2024/01/18/the-gambia-selected-issues-543902/index.md",
  "summary": "This Selected Issues paper investigates the drivers of headline inflation and the degree of exchange rate pass-through (ERPT) in The Gambia over the period 2014–2023. Stylized facts and the limited studies on The Gambia point to the role of both domestic and external drivers for inflation dynamics.",
  "sections": [
    {
      "heading": "Overview",
      "content": "- Time period analyzed: 2014–2023.\n- Scope: Drivers of headline inflation and the degree of exchange rate pass-through (ERPT) in The Gambia.\n- Context: The Gambia is a net importer of essential foods and energy."
    },
    {
      "heading": "Key Findings",
      "content": "- Long-term decisive drivers of inflation:\n  - Global prices of commodities: food, oil, and fertilizer.\n  - The exchange rate.\n  - The domestic output gap.\n- Short-run dynamics of inflation:\n  - Global food price movements play a prominent role.\n  - Second-round effects from changes in food prices and the output gap influence headline inflation.\n- Exchange rate pass-through (ERPT):\n  - Evidence of an asymmetric ERPT to domestic prices.\n  - The size of currency depreciation matters for inflation dynamics.\n- Monetary policy effectiveness:\n  - Monetary policy can tame inflation in the short run provided the monetary policy rate is adjusted rapidly and boldly."
    },
    {
      "heading": "Policy Implications and Recommendations",
      "content": "- Adjust monetary policy rates rapidly and boldly to contain short-run inflationary pressures driven by commodity price shocks and exchange rate movements.\n- Recognize and monitor asymmetric ERPT effects and the nonlinear impact of the size of currency depreciations when designing policy responses to exchange rate shocks.\n- Account for both external (global commodity prices) and domestic (output gap, exchange rate) factors in inflation forecasting and policy formulation.\n\n---\n\n Content in this bundle\n\n- The Gambia: Selected Issues; IMF Country Report No. 24/16; December 18, 2023\n  - The Gambia: Selected Issues; IMF Country Report No. 24/16; December 18, 2023 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - The Gambia: Selected Issues; IMF Country Report No. 24/16; December 18, 2023 (PDF){rel=\"external\" type=\"application/pdf\"}"
    }
  ],
  "bullets": [
    "[Markdown version](/en/publications/cr/issues/2024/01/18/the-gambia-selected-issues-543902/index.md)",
    "[Structured JSON version](/en/publications/cr/issues/2024/01/18/the-gambia-selected-issues-543902/index.json)",
    "[Bundle manifest](/en/publications/cr/issues/2024/01/18/the-gambia-selected-issues-543902/bundle-manifest.json)",
    "Published: January 18, 2024",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9798400263859.002",
    "Time period analyzed: 2014–2023.",
    "Scope: Drivers of headline inflation and the degree of exchange rate pass-through (ERPT) in The Gambia.",
    "Context: The Gambia is a net importer of essential foods and energy.",
    "Long-term decisive drivers of inflation:",
    "Short-run dynamics of inflation:",
    "Exchange rate pass-through (ERPT):",
    "Adjust monetary policy rates rapidly and boldly to contain short-run inflationary pressures driven by commodity price shocks and exchange rate movements.",
    "Recognize and monitor asymmetric ERPT effects and the nonlinear impact of the size of currency depreciations when designing policy responses to exchange rate shocks.",
    "Account for both external (global commodity prices) and domestic (output gap, exchange rate) factors in inflation forecasting and policy formulation.",
    "**The Gambia: Selected Issues; IMF Country Report No. 24/16; December 18, 2023**"
  ],
  "related": [
    {
      "title": "The Gambia: Selected Issues; IMF Country Report No. 24/16; December 18, 2023",
      "role": "document",
      "sourceUrl": "https://www.imf.org/-/media/files/publications/cr/2024/english/1gmbea2024002.pdf",
      "summary": {
        "path": "/-/media/files/publications/cr/2024/english/1gmbea2024002.pdf.md",
        "mime": "text/markdown"
      },
      "binary": {
        "path": "/-/media/files/publications/cr/2024/english/1gmbea2024002.pdf",
        "mime": "application/pdf"
      }
    }
  ],
  "alternates": {
    "markdown": "/en/publications/cr/issues/2024/01/18/the-gambia-selected-issues-543902/index.md",
    "json": "/en/publications/cr/issues/2024/01/18/the-gambia-selected-issues-543902/index.json",
    "bundleManifest": "/en/publications/cr/issues/2024/01/18/the-gambia-selected-issues-543902/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-11T17:42:20.545Z"
}