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Inflation Dynamics in Burundi: Challenges and Potential Solutions

Author

Listed:
  • Deogratius Wenceslaus Kimolo

    (Department of Economics, University of South Africa, Pretoria, South Africa)

  • Nicholas Odhiambo

    (Department of Economics, University of South Africa, Pretoria, South Africa)

  • Sheilla Nyasha

    (Department of Economics, University of South Africa, Pretoria, South Africa)

Abstract

This study provides a comprehensive analysis of inflation dynamics in Burundi, a country facing long-standing political and economic challenges. Through exploratory review of literature, it examines inflation trends, policy measures, and challenges, while offering potential solutions to combat high inflation in Burundi. Findings reveal periods of high and low inflation influenced by economic and political factors. Despite policy efforts, the country continues to experience volatile and high inflation levels, impacting the economy and citizens negatively. Key challenges include political instability, weak institutions, and external shocks. The study recommends sustained implementation and monitoring of policies promoting financial sector development, enhancing access to finance, and addressing corruption. These measures are vital for achieving stability and prosperity. The study also emphasizes the importance of evidence-based approaches to inflation control. In addition, the study underscores the significance of ongoing policy efforts in achieving economic stability and prosperity in Burundi amidst inflation challenges.

Suggested Citation

  • Deogratius Wenceslaus Kimolo & Nicholas Odhiambo & Sheilla Nyasha, 2024. "Inflation Dynamics in Burundi: Challenges and Potential Solutions," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 1, pages 43-51.
    • Handle: RePEc:ddj:fseeai:y:2024:i:1:p:43-51
    DOI: 10.35219/eai15840409386
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    References listed on IDEAS

    as
    1. Robert J. Barro, 2013. "Inflation and Economic Growth," Annals of Economics and Finance, Society for AEF, vol. 14(1), pages 121-144, May.
    2. International Monetary Fund, 1997. "Burundi: Recent Economic Developments," IMF Staff Country Reports 1997/114, International Monetary Fund.
    3. Fischer, Stanley, 1993. "The role of macroeconomic factors in growth," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 485-512, December.
    4. Cukierman, Alex & Edwards, Sebastian & Tabellini, Guido, 1992. "Seigniorage and Political Instability," American Economic Review, American Economic Association, vol. 82(3), pages 537-555, June.
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