The dynamic specification of the inflation model in Zimbabwe
In order to estimate the inflation function in Zimbabwe we used cointegration and error-correction mechanism (a methodology popularized by Hendry etal (1989)). This approach has received extensive empirical support. Right now the approach seems to have generally settled the long-standing problem ove...
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Midlands State University
2015
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| Online Access: | http://hdl.handle.net/11408/734 |
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| author | Sunde, Tafirenyika |
| author_facet | Sunde, Tafirenyika |
| author_sort | Sunde, Tafirenyika |
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| description | In order to estimate the inflation function in Zimbabwe we used cointegration and error-correction mechanism (a methodology popularized by Hendry etal (1989)). This approach has received extensive empirical support. Right now the approach seems to have generally settled the long-standing problem over the instability of the inflation model (function). Using the above technique, we managed to come up with a stable inflation model for Zimbabwe. This study also established that one must go beyond a simple monetary account of the inflation process even if inflation will always have a monetary dimension. Other factors that were found to be significant in explaining inflation in Zimbabwe are: real output, budget deficit, exchange rate depreciation and interest rates. The results that we got fitted very well all the theoretical priors, and they also concur with the studies done elsewhere for both the developed and the developing countries. Introduction |
| format | Article |
| id | ir-11408-734 |
| institution | My University |
| language | English |
| publishDate | 2015 |
| publisher | Midlands State University |
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| spelling | ir-11408-7342022-06-27T13:49:06Z The dynamic specification of the inflation model in Zimbabwe Sunde, Tafirenyika Inflation In order to estimate the inflation function in Zimbabwe we used cointegration and error-correction mechanism (a methodology popularized by Hendry etal (1989)). This approach has received extensive empirical support. Right now the approach seems to have generally settled the long-standing problem over the instability of the inflation model (function). Using the above technique, we managed to come up with a stable inflation model for Zimbabwe. This study also established that one must go beyond a simple monetary account of the inflation process even if inflation will always have a monetary dimension. Other factors that were found to be significant in explaining inflation in Zimbabwe are: real output, budget deficit, exchange rate depreciation and interest rates. The results that we got fitted very well all the theoretical priors, and they also concur with the studies done elsewhere for both the developed and the developing countries. Introduction 2015-12-02T14:26:34Z 2015-12-02T14:26:34Z 2006 Article 1815-9036 http://hdl.handle.net/11408/734 en The Dyke;Vol.2, No. 1; p.73-83 open Midlands State University |
| spellingShingle | Inflation Sunde, Tafirenyika The dynamic specification of the inflation model in Zimbabwe |
| title | The dynamic specification of the inflation model in Zimbabwe |
| title_full | The dynamic specification of the inflation model in Zimbabwe |
| title_fullStr | The dynamic specification of the inflation model in Zimbabwe |
| title_full_unstemmed | The dynamic specification of the inflation model in Zimbabwe |
| title_short | The dynamic specification of the inflation model in Zimbabwe |
| title_sort | dynamic specification of the inflation model in zimbabwe |
| topic | Inflation |
| url | http://hdl.handle.net/11408/734 |
| work_keys_str_mv | AT sundetafirenyika thedynamicspecificationoftheinflationmodelinzimbabwe AT sundetafirenyika dynamicspecificationoftheinflationmodelinzimbabwe |