European Parliament Library

Sources of Inflation in Sub-Saharan Africa, Shanaka Peiris, Régis Barnichon

This paper explores the sources of inflation in Sub-Saharan Africa by examining the relationship between inflation, the output gap, and the real money gap. Using heterogeneous panel cointegration estimation techniques, we estimate cointegrating vectors for the production function and the real money demand function to recover the structural output and money gaps for seventeen African countries. The central finding is that both gaps contain significant information regarding the evolution of inflation, albeit with a larger role played by the money gap. There is no significant evidence of asymmetry in the relationship
Table Of Contents
Contents; I. Introduction; II. Inflation Determination; III. Measuring the Output and Real Money gaps; IV. Data and Methodology; V. Panel Estimation; A. Estimation Technique; B. Data Properties; C. Measuring the Output Gap; Tables; 1. Panel Cointegration Tests; 2. Cointegration Regressions; D. Measuring the Real Money Gap; E. Phillips Curve Estimates; 3. Stationarity Tests for Measured Gaps; F. Asymmetry in the Phillips Curve; 4. Phillips Curve Panel GMM Estimates; VI. Conclusion; 5. A Simple Asymmetric Model; References; Appendix
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (26 p.)
Specific Material Designation
Form Of Item

Library Locations

  • EP Library Brussels

    60 rue Wiertz, Brussels, B-1047, BE
  • EP Library Strasbourg

    7 Place Adrien Zeller, Allée du Printemps, Strasbourg, F-67070, FR
  • EP Library Luxembourg

    Rue du Fort Thüngen, Luxembourg, L-1313, LU