Post Stabilization Inflation Dynamics in Slovenia

29 Pages Posted: 15 Feb 2006

See all articles by Kevin Ross

Kevin Ross

International Monetary Fund (IMF) - European Department

Date Written: March 1998

Abstract

This paper investigates the inflation process in Slovenia through an examination of some commonly used determinants of inflation in transition economies. Granger causality tests and an analysis of unrestricted VAR models suggest a strong linkage between both growth in broader monetary aggregates and changes in the tolar-deutsche mark exchange rate on retail price inflation. While the growth in wages affects inflation, it appears that both changes in the exchange rate and growth in monetary aggregates provide the initial impulse. A discussion of the present money-exchange rate policy framework and its influence on inflation is also provided.

Keywords: Inflation inertia, unrestricted VARs, monetary policy

JEL Classification: E3, F0

Suggested Citation

Ross, Kevin, Post Stabilization Inflation Dynamics in Slovenia (March 1998). IMF Working Paper No. 98/27, Available at SSRN: https://ssrn.com/abstract=882262

Kevin Ross (Contact Author)

International Monetary Fund (IMF) - European Department ( email )

700 19th St. NW
Washington, DC 20431
United States
202 623 5672 (Phone)

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