Modeling Inflation for Mali

36 Pages Posted: 25 Jan 2008

See all articles by Mame Astou Diouf

Mame Astou Diouf

International Monetary Fund (IMF)

Date Written: Janurary 2008

Abstract

This paper investigates how consumer price inflation is determined in Mali for 1979-2006 along three macroeconomic explanations: monetarist theories, emphasizing the impact of excess money supply, the structuralist hypothesis, stressing the impact of supply-side constraints, and external theories, describing the effects of foreign transmission mechanisms on a small open economy. The analysis makes use of co-integration techniques and general-to-specific modeling. Average national rainfall, and to a lesser extent deviations from monetary and external sector equilibrium are found to be the main long-run determinants of inflation. The paper offers policy recommendations for controlling inflation in Mali.

Keywords: Inflation, Mali, Real effective exchange rates, Demand for money

Suggested Citation

Diouf, Mame Astou, Modeling Inflation for Mali (Janurary 2008). IMF Working Paper No. 07/295, Available at SSRN: https://ssrn.com/abstract=1087175

Mame Astou Diouf (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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