Sources Of Inflation In Developing Countries
- Topics:
- Global Strategy
- Source:
- International Monetory Fund
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Overview: This paper develops stylized facts about the inflation processes in developing countries, focusing particularly on the relationship between the exchange rate regime and the sources of inflation. Using annual data from 1964 to 1998 for 53 developing countries, the paper finds that money growth and exchange rate changes- factors typically related to fiscal influences, is far more important in countries with floating exchange rate regimes than in those with fixed exchange rates. Instead, inertial factors dominant the inflation process in developing countries with fixed exchange rate regime.
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Format: PDF | Size: 768KB | Date: Dec 2001 | Pages: 30
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