Inflation and Monetary Pass-Through in Guinea
AbstractThe paper analyzes the dynamics of inflation in Guinea during 1992-2003 applying cointegration and error-correction modeling to a bivariate model that includes consumer price and monetary variables. The empirical results, based on quarterly data, confirm the existence of a long-run relationship between money supply and consumer prices. This paper argues further that the pass-through has increased in recent years. Short-term dynamics are shown to accentuate the long-run impact. Impulse response analysis shows that a shock in the money stock will have an increasing impact over two years and will then stabilize at a higher level.
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Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 04/223.
Date of creation: 01 Dec 2004
Date of revision:
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-10-23 (All new papers)
- NEP-CBA-2005-11-14 (Central Banking)
- NEP-MAC-2005-10-24 (Macroeconomics)
- NEP-MON-2005-10-24 (Monetary Economics)
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