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Modeling Inflation in Chad

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  • Mr. Tidiane Kinda

Abstract

This paper examines the determinants of inflation in Chad using quarterly data from 1983:Q1 to 2009:Q3. The analysis is based on a single-equation model, completed by a structural vector auto regression model to capture inflation persistence. The results show that the main determinants of inflation in Chad are rainfall, foreign prices, exchange rate movements, and public spending. The effects of rainfall shocks and changes in foreign prices on inflation persist during six quarters. Changes in public spending and the nominal exchange rate affect inflation during three and four quarters, respectively.

Suggested Citation

  • Mr. Tidiane Kinda, 2011. "Modeling Inflation in Chad," IMF Working Papers 2011/057, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2011/057
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    References listed on IDEAS

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    Cited by:

    1. Carlos Caceres & Marcos Poplawski-Ribeiro & Darlena Tartari, 2013. "Inflation Dynamics in the CEMAC Region," Journal of African Economies, Centre for the Study of African Economies, vol. 22(2), pages 239-275, March.
    2. Jean-Baptiste Gossé & Cyriac Guillaumin, 2013. "Can External Shocks Explain the Asian Side of Global Imbalances? Lessons from a Structural VAR Model with Block Exogeneity," Review of International Economics, Wiley Blackwell, vol. 21(1), pages 85-102, February.
    3. Cyriac Guillaumin & Salem Boubakri & Alexandre Silanine, 2020. "Do commodity price volatilities impact currency misalignments in commodity-exporting countries?," Economics Bulletin, AccessEcon, vol. 40(2), pages 1727-1739.
    4. SILUE Drissa, 2022. "The Determinants of Inflation in Cote D'ivoire: An Explanatory Model," International Journal of Economics and Financial Research, Academic Research Publishing Group, vol. 8(4), pages 112-122, 12-2022.
    5. Eric Girardin & Cheikh A. T. Sall, 2018. "Inflation Dynamics of Franc-Zone Countries Determinants, Co-movements and Spatial Interactions," Open Economies Review, Springer, vol. 29(2), pages 295-320, April.
    6. Oulatta, Moon, 2016. "A Generic Theory of Price Determination," MPRA Paper 76014, University Library of Munich, Germany.
    7. BIKAI, J. Landry & BATOUMEN M., Hardit & FOSSOUO, Armand, 2016. "Determinants of inflation in CEMAC: the role of money," MPRA Paper 89111, University Library of Munich, Germany.
    8. Durevall, Dick & Loening, Josef L. & Ayalew Birru, Yohannes, 2013. "Inflation dynamics and food prices in Ethiopia," Journal of Development Economics, Elsevier, vol. 104(C), pages 89-106.
    9. Oulatta, Moon, 2016. "Modeling Inflation in the WAEMU's Zone," MPRA Paper 82983, University Library of Munich, Germany.
    10. Dick Durevall & Bo Sjö, 2012. "Working Paper 151 - The Dynamics of Inflation in Ethiopia and Kenya," Working Paper Series 400, African Development Bank.

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