Dynamic Effects of External Shocks on Malawi's Inflation
Author | : Owen Maganga |
Publisher | : LAP Lambert Academic Publishing |
Total Pages | : 76 |
Release | : 2012 |
ISBN-10 | : 3843359776 |
ISBN-13 | : 9783843359771 |
Rating | : 4/5 (76 Downloads) |
Download or read book Dynamic Effects of External Shocks on Malawi's Inflation written by Owen Maganga and published by LAP Lambert Academic Publishing. This book was released on 2012 with total page 76 pages. Available in PDF, EPUB and Kindle. Book excerpt: The study contributes in the modelling of inflation in Malawi by including external shocks variables which have been ignored by most previous studies. Using the autoregressive distributed lag model the study reveals that South Africa's inflation and the exchange rate play a significant role in the long run inflationary process in Malawi. It was also revealed that the exchange rate was the single most important source of imported inflation. The study suggests that monetary authorities in Malawi should consider adopting inflation targeting which has been successful in fighting inflation in South Africa, its major trading partner.