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Causes of Inflation in Namibia: An Empirical Exploration

Author

Listed:
  • John Ernest Odada
  • Joel Hinaunye Eita

    (Monash University)

Abstract

This paper sets out to establish possible causes of inflation in Namibia. These are: growth in Namibia’s money supply, aggregate demand and domestic costs of production; and pass-through of South Africa’s prices and costs to domestic prices in Namibia. This paper argues that inflation in Namibia is caused by a combination of monetary and structural factors. The paper recommends the following strategies:optimal mix of monetary and fiscal policy measures; exploration of Namibia’s import substitution possibilities; reduction of monopolistic and oligopolistic powers in manufacturing and trade; and increase labour productivity, as a means of reducing average cost of production.

Suggested Citation

  • John Ernest Odada & Joel Hinaunye Eita, 2010. "Causes of Inflation in Namibia: An Empirical Exploration," The African Finance Journal, Africagrowth Institute, vol. 12(Conferenc), pages 44-57.
    • Handle: RePEc:afj:journl:v:12:y:2010:i:conference:p:44-57
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    Citations

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    Cited by:

    1. Teshale D. BEDADA & Wondaferahu M. DEMISSIE & Endeg T. WOLDE, 2020. "Determinants of Inflationary Experience in Ethiopia," Journal of Economics and Financial Analysis, Tripal Publishing House, vol. 4(1), pages 15-54.
    2. Joel Hinaunye Eita & Victoria Manuel & Erwin Naimhwaka & Florette Nakusera, 2021. "The Impact of Fiscal Deficit on Inflation in Namibia," Journal of Central Banking Theory and Practice, Central bank of Montenegro, vol. 10(1), pages 141-164.

    More about this item

    JEL classification:

    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation

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