Determinants Of Inflation In Gcc
Download Determinants Of Inflation In Gcc PDF/ePub or read online books in Mobi eBooks. Click Download or Read Online button to get Determinants Of Inflation In Gcc book now. This website allows unlimited access to, at the time of writing, more than 1.5 million titles, including hundreds of thousands of titles in various foreign languages.
Determinants of Inflation in GCC
Author: Mrs.Hanan Morsy
language: en
Publisher: International Monetary Fund
Release Date: 2009-04-01
Inflationary pressures have heightened in the oil-rich Gulf Cooperation Council (GCC) since 2003. This paper studies determinants of inflation in GCC, using an empirical model that includes domestic and external factors. Inflation in major trading partners appears to be the most relevant foreign factor. In addition, oil revenues have reinforced inflationary pressures through growth of credit and aggregate spending. In the short-run, binding capacity constraints also explain higher inflation given increased government spending. Nonetheless, by targeting supply-side bottlenecks, the increase in government spending is easing capacity constraints and will ultimately help to moderate price inflation.
Determinants of the Foreign Exchange Risk Premium in Gulf Cooperation Council Countries
Author: Mr.Tigran Poghosyan
language: en
Publisher: International Monetary Fund
Release Date: 2010-11-01
This paper analyzes macroeconomic determinants of the foreign exchange risk premium in two Gulf Cooperation Council (GCC) countries that peg their currencies to the U.S. dollar: Saudi Arabia and the United Arab Emirates. The analysis is based on the stochastic discount factor methodology, which imposes a no arbitrage condition on the relationship between the foreign exchange risk premium and its macroeconomic determinants. Estimation results suggest that U.S. inflation and consumption growth are important factors driving the risk premium, which is in line with the standard C-CAPM model. In addition, growth in international oil prices influences the risk premium, reflecting the important role played by the hydrocarbon sector in GCC economies. The methodology employed in this paper can be used for forecasting the risk premium on a monthly basis, which has important practical implications for policymakers interested in the timely monitoring of risks in the GCC.
Algeria
Author: International Monetary Fund. Middle East and Central Asia Dept.
language: en
Publisher: International Monetary Fund
Release Date: 2013-02-22
This paper studies the main sources for growth in Algeria within a cross-country analysis and draws policy recommendations to support faster growth. In Section 1, a growth accounting exercise framework has been explained, and in Section 2, the determinants for growth are identified. This study examines the factors behind the recent increase in inflation and the policies that should be implemented to bring inflation back to the level targeted by the monetary authorities. Two approaches used to explore the determinants of inflation were discussed.