Almounsor, Abdullah.
Inflation Dynamics in Yemen An Empirical Analysis / Abdullah Almounsor. [electronic resource] : Abdullah Almounsor. - Washington, D.C. : International Monetary Fund, 2010. - 1 online resource (23 p.) - IMF Working Papers; Working Paper ; No. 10/144 . - IMF Working Papers; Working Paper ; No. 10/144 .
Yemen has had a high and volatile rate of inflation in recent years. This paper studies the underlying determinants of inflation dynamics in Yemen using three different approaches: (i) a single equation model, (ii) a Structural Vector Autoregression Model, and (iii) a Vector Error Correction Model. The outcomes suggest that inflation dynamics in Yemen are driven by international price shocks, exchange rate depreciation, domestic demand shocks, and monetary innovations. The impact of international prices and exchange rate depreciation indicate a significant pass-through of import prices. In the short run, external shocks of international prices and the exchange rate account for most variations in inflation, but domestic shocks to money supply and domestic demand explain larger variations in the medium term.
1455201278 : 18.00 USD
1018-5941
10.5089/9781455201273.001 doi
Inflation Dynamics
Inflation Response
Monetary Fund
Money Supply
Pass-Through
Yemen, Republic of
Inflation Dynamics in Yemen An Empirical Analysis / Abdullah Almounsor. [electronic resource] : Abdullah Almounsor. - Washington, D.C. : International Monetary Fund, 2010. - 1 online resource (23 p.) - IMF Working Papers; Working Paper ; No. 10/144 . - IMF Working Papers; Working Paper ; No. 10/144 .
Yemen has had a high and volatile rate of inflation in recent years. This paper studies the underlying determinants of inflation dynamics in Yemen using three different approaches: (i) a single equation model, (ii) a Structural Vector Autoregression Model, and (iii) a Vector Error Correction Model. The outcomes suggest that inflation dynamics in Yemen are driven by international price shocks, exchange rate depreciation, domestic demand shocks, and monetary innovations. The impact of international prices and exchange rate depreciation indicate a significant pass-through of import prices. In the short run, external shocks of international prices and the exchange rate account for most variations in inflation, but domestic shocks to money supply and domestic demand explain larger variations in the medium term.
1455201278 : 18.00 USD
1018-5941
10.5089/9781455201273.001 doi
Inflation Dynamics
Inflation Response
Monetary Fund
Money Supply
Pass-Through
Yemen, Republic of