Investigating Inflation Dynamics in Sudan

23 Pages Posted: 12 Sep 2008

See all articles by Kenji Moriyama

Kenji Moriyama

International Monetary Fund (IMF)

Date Written: July 2008

Abstract

This paper investigates inflation dynamics in Sudan using three different approaches: the single equation model, the structural vector-auto regression model and a vector error correction model. This is the first study in a low-income and a post-conflict country that uses these three separate techniques to understand inflation dynamics. The use of these approaches is particularly useful to check the robustness of the estimated parameters in the model for a country with limited data coverage and possible structural breaks. The estimated results suggest that money supply growth and nominal exchange rate changes affect inflation with 18-24 months time lag.

Keywords: Sudan, Inflation, Money supply, Real effective exchange rates, Monetary policy, Economic models

Suggested Citation

Moriyama, Kenji, Investigating Inflation Dynamics in Sudan (July 2008). IMF Working Paper No. 08/189, Available at SSRN: https://ssrn.com/abstract=1266522

Kenji Moriyama (Contact Author)

International Monetary Fund (IMF) ( email )