Inflation Dynamics in the CEMAC Region
30 Pages Posted: 18 Oct 2011
There are 2 versions of this paper
Inflation Dynamics in the CEMAC Region
Inflation Dynamics in the CEMAC Region
Date Written: October 2011
Abstract
This paper analyses inflation dynamics in the Central African Economic and Monetary Community (CEMAC) using a constructed dataset for country-specific commodity price indices and panel cointegrated vector autoregressive (VAR) models. Imported commodity price shocks are significant in explaining inflation in the region. Governments are another driving force of inflation dynamics mainly through controlled prices and the role of capital expenditure in domestic activity. In most CEMAC countries, the largest effect of global food and fuel prices occurs after four or five quarters in noncore inflation and then decays substantially over time. Second-round effects are significant only in Cameroon and to a lesser extent in the Republic of Congo.
Keywords: Central Africa, Central African Economic and Monetary Community, Commodity price fluctuations, Commodity prices, Cross country analysis, Economic models, Energy prices, External shocks, Food imports, Government expenditures, Imports, Inflation, Price controls
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Inflation Dynamics in the CEMAC Region
By Carlos Caceres, Marcos Poplawski-ribeiro, ...
-
A Sovereign Wealth Fund to Lift Germany’s Curse of Excess Savings
By Daniel Gros and Thomas Mayer
-
Public Investment in Resource-Abundant Developing Countries
By Andrew Berg, Rafael Portillo, ...
-
Current Account Norms in Natural Resource Rich and Capital Scarce Economies
By Juliana Araujo, Bin (grace) Li, ...
-
Investing Volatile Oil Revenues in Capital-Scarce Economies: An Application to Angola
By Christine Richmond, Irene Yackovlev, ...