Determinants of Recent Inflation in Ethiopia
Abstract Inflation has been a rising in Ethiopia during recent years, mainly fueled by food inflation. In the study, an analysis of the determinants of inflation was made using quarterly data during 1997/98 – 2007/08. The research employed Co-integration regression after finding that the variables included in the model were cointegrated. The results from the study depicts that inflation was significantly affected by money supply growth (positively) and domestic output (negatively). Though expected to have a significant effect; fluctuations in the official exchange rate, gas oil price, and budget deficit were found to have an insignificant impact on the inflation rate. Surprisingly though expected to have an insignificant impact, lending rate was found to have a significant impact on the inflation rate. The study concludes with recommendations to avert inflation.
|Date of creation:||31 Aug 2008|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Christopher W. Crowe, 2006.
"Inflation, Inequality, and Social Conflict,"
IMF Working Papers
06/158, International Monetary Fund.
- Christopher Crowe, 2004. "Inflation, Inequality and Social Conflict," CEP Discussion Papers dp0657, Centre for Economic Performance, LSE.
- Chris Crowe, 2004. "Inflation, Inequality and Social Conflict," Money Macro and Finance (MMF) Research Group Conference 2004 69, Money Macro and Finance Research Group.
- Luis CatÃ£o & Marco Terrones, 2003.
"Fiscal Deficits and Inflation,"
IMF Working Papers
03/65, International Monetary Fund.
- Keith M. Carlson, 1980. "The lag from money to prices," Review, Federal Reserve Bank of St. Louis, issue Oct, pages 3-10.
- Mark J Flanagan & Felix Hammermann, 2007. "What Explains Persistent Inflation Differentials Across Transition Economies?," IMF Working Papers 07/189, International Monetary Fund.
- Eva Gutierrez, 2003. "Inflation Performance and Constitutional Central Bank Independence; Evidence From Latin America and the Caribbean," IMF Working Papers 03/53, International Monetary Fund.
- Marc Zelmer & Andrea Schaechter & Mark R. Stone & Alina Carare, 2002. "Establishing Initial Conditions in Support of Inflation Targeting," IMF Working Papers 02/102, International Monetary Fund.
- repec:imf:imfeci:2 is not listed on IDEAS
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:29668. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.