## Inflation Determinants in Paraguay: Cost Push versus Demand Pull Factors

_IMF Working Papers, December 1, 2008_

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**Canonical URL:** [Inflation Determinants in Paraguay: Cost Push versus Demand Pull Factors](https://www.imf.org/en/publications/wp/issues/2016/12/31/inflation-determinants-in-paraguay-cost-push-versus-demand-pull-factors-22505)

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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

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### 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

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/inflation-determinants-in-paraguay-cost-push-versus-demand-pull-factors-22505_