TY  - BOOK
AU  - Cevik,Serhan
AU  - Teksoz,Katerina
TI  - Hitchhiker's Guide to Inflation in Libya
T2  - IMF Working Papers; Working Paper
SN  - 1484353048 :
SN  - 1018-5941
PY  - 2013///
CY  - Washington, D.C.
PB  - International Monetary Fund
KW  - General
KW  - imf
KW  - Inflation Dynamics
KW  - International Sanctions
KW  - Price Inflation
KW  - Libyan Arab Jamahiriya
N2  - This paper presents an empirical investigation of inflation dynamics in Libya over the period 1964-2010, using cointegration and error correction models. While inflation inertia is found to be a key determinant of consumer price inflation, the econometric results indicate that government spending, money supply growth, global inflation, and exchange rate pass-through play central roles in the inflation process. These findings are broadly consistent with the experience of other countries that are natural resource dependent. We also find evidence that the imposition and subsequent removal of international sanctions on Libya had a noteworthy impact on consumer price inflation. Collectively, our estimates indicate that the deviations from an equilibrium path initiate significant adjustments in inflation dynamics, and that closer coordination between monetary and fiscal policies would improve the balance between economic growth and price stability
UR  - http://elibrary.imf.org/view/IMF001/20380-9781484353042/20380-9781484353042/20380-9781484353042.xml
UR  - http://www.imfbookstore.org/IMFORG/9781484353042
ER  -