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Inflation divergence within the SADC

Author

Listed:
  • Jaunky Chandr Vishal

    (University of Mauritius)

Abstract

This study investigates the feasibility of a monetary union in the Southern African Development Community (SADC) by testing for inflation convergence for 11 members. Quarterly data over the period 1992:3 – 2001:4 are employed. Various panel unit root tests are applied to test whether the purchasing power parity (PPP) holds. Overall, strong evidence of a unit root is found. This implies inflation divergence among the SADC members.

Suggested Citation

  • Jaunky Chandr Vishal, 2010. "Inflation divergence within the SADC," Economics Bulletin, AccessEcon, vol. 30(2), pages 1137-1143.
    • Handle: RePEc:ebl:ecbull:eb-08e30010
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    File URL: http://www.accessecon.com/Pubs/EB/2010/Volume30/EB-10-V30-I2-P107.pdf
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    More about this item

    Keywords

    PPP; Inflation Convergence; Panel Unit Root Tests; SADC.;
    All these keywords.

    JEL classification:

    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • F3 - International Economics - - International Finance

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