n Journal of Strategic Studies : A Journal of the Southern Bureau of Strategic Studies Trust - Modeling Zimbabwe's inflation process
|Article Title||Modeling Zimbabwe's inflation process|
|© Publisher:||Southern Bureau of Strategic Studies Trust|
|Journal||Journal of Strategic Studies : A Journal of the Southern Bureau of Strategic Studies Trust|
|Affiliations||1 University of Zimbabwe and 2 University of Zimbabwe|
|Publication Date||Jan 2011|
|Pages||32 - 49|
|Keyword(s)||Cost-push, Demand-pull, Hyper-inflation, Inflation, Money supply, Seignorage and Structuralism|
The study attempts to model how different factors have been influencing inflation in Zimbabwe from 1975 to 2008. It employs time series econometric methodology to develop the inflation model for Zimbabwe. While the explicit link between current exchange rate and inflation professed by other studies is not refuted, the study finds significant evidence that money supply, expectations about future prices, retarded output growth, government budget deficit, interest rates and lagged exchange rate are the major drivers of inflation in Zimbabwe. However, the study finds no evidence of cointegration of the variables explaining inflation in Zimbabwe.
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