The Federal Democratic Republic of Ethiopia: Selected Issues

July 31, 2008

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The Federal Democratic Republic of Ethiopia: Selected Issues, (USA: International Monetary Fund, 2008) accessed November 23, 2024

Summary

This Selected Issues paper examines the causes of recent inflation in Ethiopia and discusses possible policy responses. Inflation in Ethiopia has reached a historical peak. Following a drought-related surge of food prices in 2003, it receded to single digits but soon turned back up in 2004 and gradually increased. The paper provides an overview of recent inflation developments, and explores the factors contributing to recent inflation, based on fresh studies and the review of current monetary and external developments. The paper also lays out cross-country analysis with countries experiencing high inflation.

Subject: Demand for money, Exports, Foreign exchange, Imports, Inflation, International trade, Money, Prices, Real exchange rates

Keywords: Africa, Broad money velocity, CR, Demand for money, Double-digit inflation, Ethiopia, Exchange rate, Exports, Global, Imports, Inflation, Inflation expectation, Inflation surge, ISCR, Lag inflation, Price, Real exchange rates, Single-digit inflation, Undershot level

Publication Details

Pages:

50
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2008/259
Stock No:

1ETHEA2008001
ISBN:

9781451812817
ISSN:

1934-7685

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