IMF Working Papers

Inflation Dynamics in the Dominican Republic

By Oral Williams, Olumuyiwa S Adedeji

February 1, 2004

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Oral Williams, and Olumuyiwa S Adedeji. Inflation Dynamics in the Dominican Republic, (USA: International Monetary Fund, 2004) accessed November 21, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper investigates the determinants of inflation in the Dominican Republic during 1991-2002, a period characterized by remarkable macroeconomic stability and growth. By developing a parsimonious and empirically stable error-correction model using quarterly observations, the paper finds that inflation is explained by changes in monetary aggregates, real output, foreign inflation, and the exchange rate.

Subject: Currency markets, Demand for money, Exchange rates, Financial markets, Foreign exchange, Inflation, Monetary base, Money, Prices

Keywords: Cointegration, Currency markets, Demand for money, Drives inflation, Error-Correction, Exchange rates, Global, Goods market, Inflation, Inflation dynamics, Inflation equation, Interest rate differential, Low-inflation environment, Monetary base, Nominal exchange rate, WP

Publication Details

  • Pages:

    21

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2004/029

  • Stock No:

    WPIEA0292004

  • ISBN:

    9781451844832

  • ISSN:

    1018-5941