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Macroeconomic effects of falling commodity price: Evidence from Democratic Republic of the Congo

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  • PINSHI, Christian P.

Abstract

This paper assesses the shock impact of commodity prices on the macroeconomic framework in the Democratic Republic of the Congo. Using a Vector autoregressive (VAR) model, we determine the impulses of each macroeconomic sector to lower prices. The results indicate that this shock leads to complex effects that can lead to systemic risks and crises. We suggest that it would be important for governments, given such shocks, to learn from and take immediate action to strengthen the resilience of the economy and the financial system to future shocks in based.

Suggested Citation

  • PINSHI, Christian P., 2018. "Macroeconomic effects of falling commodity price: Evidence from Democratic Republic of the Congo," MPRA Paper 101068, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:101068
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    References listed on IDEAS

    as
    1. Günes Kamber & Gabriela Nodari & Benjamin Wong, 2016. "The Impact of Commodity Price Movements on the New Zealand Economy," Reserve Bank of New Zealand Analytical Notes series AN2016/05, Reserve Bank of New Zealand.
    2. Pinshi, Christian, 2016. "Une perspective macroprudentielle pour la stabilité financière [A macroprudential perspective on financial stability]," MPRA Paper 77905, University Library of Munich, Germany, revised 28 Feb 2017.
    3. Olivier J. Blanchard & Jordi Galí, 2007. "The Macroeconomic Effects of Oil Price Shocks: Why Are the 2000s so Different from the 1970s?," NBER Chapters, in: International Dimensions of Monetary Policy, pages 373-421, National Bureau of Economic Research, Inc.
    4. Christian Pinshi & Emmanuel Sungani, 2018. "The Relevance Of Pass-Through Effect: Should We Revisit Monetary Policy Regime?," Post-Print hal-02566800, HAL.
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    More about this item

    Keywords

    Commodity prices; macroeconomic behavior;

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • Q02 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Commodity Market

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