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Inflation and Macroeconomic Instability in Madagascar

Author

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  • Jean‐Paul Azam
Abstract
The relationships between inflation and macro-economic instability are discussed analytically, using a simple monetary model with rational expectations, with an application to the case of Madagascar. The recent macroeconomic history of this country suggests that high inflation is correlated with high volatility of the inflation rate and the real effective exchange rate. The relevance of this observation is confirmed by an empirical analysis of the relationships between inflation, competitiveness and instability in Madagascar.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Jean‐Paul Azam, 2001. "Inflation and Macroeconomic Instability in Madagascar," African Development Review, African Development Bank, vol. 13(2), pages 175-201.
    • Handle: RePEc:adb:adbadr:817
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    Cited by:

    1. Mohamed Ilyes Gritli, 2021. "Price inflation and exchange rate pass‐through in Tunisia," African Development Review, African Development Bank, vol. 33(4), pages 715-728, December.
    2. Ahmad Zafarullah Abdul Jalil & Mukaramah Harun & Siti Hadijah Che Mat, 2020. "Macroeconomic Instability And Fiscal Decentralization: An Empirical Analysis," Papers 2001.03486, arXiv.org.
    3. Mete Feridun, 2005. "Impact of Monetary Policy on Economic Instability in Turkey (1983 - 2003)," Prague Economic Papers, Prague University of Economics and Business, vol. 2005(2), pages 171-179.
    4. Lorna Katusiime, 2018. "Private Sector Credit and Inflation Volatility," Economies, MDPI, vol. 6(2), pages 1-13, April.
    5. Koffie Ben Nassar, 2005. "Money Demand and Inflation in Madagascar," IMF Working Papers 2005/236, International Monetary Fund.
    6. Rabia Haroon & Zainab Jehan, 2022. "Measuring the impact of violence on macroeconomic instability: evidence from developing countries," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 21(1), pages 3-30, January.
    7. Onye, Kenneth U. & Bassey, Godwin E. & Daasi, Gibson L.K., 2012. "Monetary Policy Instability in Nigeria: A Rational Expectation Approach," MPRA Paper 88299, University Library of Munich, Germany.

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