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Effet d’un choc monétaire sur l’inflation: une approche par un modèle DSGE
[Monetary Inflation Relationship in Madagscar: a DSGE Model Analysis]

Author

Listed:
  • Andrianady, Josué R.
  • Rajaonarison, Njakanasandratra R.

Abstract

This work investigates the impact of an increase in the money supply on inflation using DSGE model in Madagascar. The results showed a strong positive correlation between these two variables, confirming the economic theory that an increase in the money supply leads to a proportional increase in inflation. The study also revealed that the increase in the money supply has a significant effect on inflation in the short term, but this effect quickly diminishes and disappears after about twelve quarters.Targeted monetary policies may limit short-term effects on inflation, but strcutural and busgetary policies in the long term are needed to sustainably reduce inflation and promote sustained economic growth.

Suggested Citation

  • Andrianady, Josué R. & Rajaonarison, Njakanasandratra R., 2023. "Effet d’un choc monétaire sur l’inflation: une approche par un modèle DSGE [Monetary Inflation Relationship in Madagscar: a DSGE Model Analysis]," MPRA Paper 117330, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:117330
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Madagascar; DSGE; Inflation; money; PCA;
    All these keywords.

    JEL classification:

    • A1 - General Economics and Teaching - - General Economics
    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit

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