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

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
Bibliography note
Includes bibliographical references
international or intergovernmental publication
Literary Form
non fiction
Main title
Sources of Inflation in Sub-Saharan Africa
Nature of contents
Responsibility statement
Shanaka Peiris, Régis Barnichon
Series statement
IMF Working Papers
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