Inflation and Monetary Pass-Through in Guinea

The paper analyzes the dynamics of inflation in Guinea during 1992-2003 applying cointegration and error-correction modeling to a bivariate model that includes consumer price and monetary variables. The empirical results, based on quarterly data, confirm the existence of a long-run relationship betw...

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Bibliographic Details
Main Author: Blavy, Rodolphe
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2004
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a Inflation and Monetary Pass-Through in Guinea  |c Rodolphe Blavy 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2004 
300 |a 20 pages 
651 4 |a Guinea 
653 |a Price indexes 
653 |a Inflation 
653 |a Economywide Country Studies: Africa 
653 |a Dynamic Treatment Effect Models 
653 |a Monetary economics 
653 |a Deflation 
653 |a Monetary Policy, Central Banking, and the Supply of Money and Credit: General 
653 |a Consumer price indexes 
653 |a Diffusion Processes 
653 |a Consumer prices 
653 |a Money 
653 |a Time-Series Models 
653 |a Money supply 
653 |a Price Level 
653 |a Monetary base 
653 |a Demand for Money 
653 |a Demand for money 
653 |a Prices 
653 |a Macroeconomics 
653 |a Dynamic Quantile Regressions 
653 |a Monetary Policy 
653 |a State Space Models 
653 |a Money and Monetary Policy 
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490 0 |a IMF Working Papers 
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520 |a The paper analyzes the dynamics of inflation in Guinea during 1992-2003 applying cointegration and error-correction modeling to a bivariate model that includes consumer price and monetary variables. The empirical results, based on quarterly data, confirm the existence of a long-run relationship between money supply and consumer prices. This paper argues further that the pass-through has increased in recent years. Short-term dynamics are shown to accentuate the long-run impact. Impulse response analysis shows that a shock in the money stock will have an increasing impact over two years and will then stabilize at a higher level