Post Stabilization Inflation Dynamics in Slovenia
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Summary:
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.
Series:
Working Paper No. 1998/027
Subject:
Exchange rates Foreign exchange Inflation Labor Monetary aggregates Monetary base Money Prices Wages
Frequency:
Annually
English
Publication Date:
March 1, 1998
ISBN/ISSN:
9781451844498/1018-5941
Stock No:
WPIEA0271998
Pages:
29
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