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Degré de répercussion du Taux de change sur l’Inflation en République Démocratique du Congo de 2002 à 2007
[Pass-Through of Exchange rate to inflation in DRC 2002 to 2007]

Author

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  • Luyinduladio, Menga

Abstract

This study examines for period going from 2002 to 2007 in the case of the Democratic Republic of Congo, the existence of a degree of pass through between the rate of exchange and inflation. The model VAR was chooses in order to clarify the relation which exists between the reactions of the general index of the price the consumer domestic, of the price index of the gasoline following the innovations of the rate of exchange. The results of the empirical analysis show that the innovations on the rate of exchange (DE) involve a rapid answer on the consumer price index (IPC) and the price index of gasoline (IPP). This is explained by the fact, as announces Krugman(2006) that in "an inflationary economy, it is difficult to simply modify the rate of real exchange by changing the rate of nominal exchange, insofar as the rise of the request which results from it quickly causes an interior inflation and thus a rise of the domestic prices".

Suggested Citation

  • Luyinduladio, Menga, 2010. "Degré de répercussion du Taux de change sur l’Inflation en République Démocratique du Congo de 2002 à 2007 [Pass-Through of Exchange rate to inflation in DRC 2002 to 2007]," MPRA Paper 21970, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:21970
    as

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    File URL: https://mpra.ub.uni-muenchen.de/21970/1/MPRA_paper_21970.pdf
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    References listed on IDEAS

    as
    1. Jeannine Bailliu & Eiji Fujii, 2004. "Exchange Rate Pass-Through and the Inflation Environment in Industrialized Countries: An Empirical Investigation," Staff Working Papers 04-21, Bank of Canada.
    2. Jamel JOUINI & Karim BARHOUMI, 2008. "Revisiting the decline in the exchange rate pass-through: further evidence from developing countries," Economics Bulletin, AccessEcon, vol. 3(20), pages 1-10.
    3. Taylor, John B., 2000. "Low inflation, pass-through, and the pricing power of firms," European Economic Review, Elsevier, vol. 44(7), pages 1389-1408, June.
    4. Joseph E. Gagnon & Jane Ihrig, 2004. "Monetary policy and exchange rate pass-through This article is a U.S. Government work and is in the public domain in the U.S.A," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 9(4), pages 315-338.
    5. Jonas Stulz, 2007. "Exchange rate pass-through in Switzerland: Evidence from vector autoregressions," Economic Studies 2007-04, Swiss National Bank.
    6. repec:ebl:ecbull:v:3:y:2008:i:20:p:1-10 is not listed on IDEAS
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    More about this item

    Keywords

    Inflation; taux de change; Degré de répercussion; modèle VAR;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money

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