Determinants of price dynamics in Ethiopia

Since recent years inflation has become the most important macroeconomic problem in Ethiopia. This study examines the sources of this inflationary pressure using annual data spanning over 1971 - 2014. The study estimates a comprehensive price equation and performs some simulation analysis to uncover the sources of inflationary pressure. The result of the exercise indicates that monetary and fiscal fundamentals are important determinants of price dynamics in the short run. In the long run, output remains to be the most important variable. The result also indicates that the relationship between inflation and foreign prices is rather weak.


Editor(s):
Tadele Ferede
Abu Girma
Getnet Alemu
Demirew Getachew
Issue Date:
Apr 01 2015
Publication Type:
Journal Article
ISSN:
1993-3681
Language:
English
Published in:
Ethiopian Journal of Economics, Volume 22, Number 2
Page range:
109-130
JEL Codes:
E17, E31, E64, C51
Note:
Solomon Mosisa Gofere_ Determinants of price dynamics in Ethiopia




 Record created 2017-07-12, last modified 2017-08-29

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