Degré de répercussion du Taux de change sur l’Inflation en République Démocratique du Congo de 2002 à 2007

Luyinduladio, Menga (2010): Degré de répercussion du Taux de change sur l’Inflation en République Démocratique du Congo de 2002 à 2007.

Abstract

This study examines for period going from 2002 to 2007 in the case of the Democratic Republic of Congo, the existence of a degree of pass through between the rate of exchange and inflation. The model VAR was chooses in order to clarify the relation which exists between the reactions of the general index of the price the consumer domestic, of the price index of the gasoline following the innovations of the rate of exchange. The results of the empirical analysis show that the innovations on the rate of exchange (DE) involve a rapid answer on the consumer price index (IPC) and the price index of gasoline (IPP). This is explained by the fact, as announces Krugman(2006) that in "an inflationary economy, it is difficult to simply modify the rate of real exchange by changing the rate of nominal exchange, insofar as the rise of the request which results from it quickly causes an interior inflation and thus a rise of the domestic prices".

• Item Type: MPRA Paper
• English Title: Pass-Through of Exchange rate to inflation in DRC 2002 to 2007
• Language: French
• Keywords: Inflation, taux de change, Degré de répercussion, modèle VAR
• Subjects: C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C22 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F41 - Open Economy Macroeconomics; E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E41 - Demand for Money

References

- Bailliu, J. and E. Fujii (2004), “Exchange Rate pass-through and the Inflation Environment in Industrialized Countries: An Empirical Investigation", Bank of Canada Working Paper No. 2004-21, 49 p.

- Banque Centrale du Congo, Condensé des Informations Statistiques de la RDC de 2002 à 2007.

- Bourbonnais, R (2000), Econométrie : manuel et exercices corrigés, éd. Dunod, Paris.

- Document de la Stratégie de Croissance et de la Réduction de la Pauvreté (2006), p. 13.

- Gagnon et Ihrig (2004), “Monetary Policy and Exchange Rate pass-through”, International Journal of Finance and Economics, 9 pp. 315 - 338.

- Jonas Stulz (2007), “Exchange rate pass-through in Switzerland: Evidence from vector autoregressions”, Swiss National Bank Economic Studies n° 4, 36 p.

- Karim Barhoum et Jamel Jouini (2008), Revisiting the decline in the exchange rate degré de répercussion: further evidence from developing countries, 16 p.

- Kintambu Mafuku EG. (2004) Principes d’Econométrie, éd. Presses de l’Univesité Kongo, Kinshasa, 275 p.

- Krugman Et Obstfeld (2006), "Economie Internationale", éd. Pearson Education, France, p. 474.

- Krugman, Paul (1987), “Pricing to market when the exchange rate changes. In Real financial linkages among open economies”, eds. S. W. Arndt, and J. D. Richardson, 49-70, Cambridge: MIT Press.

- Samia Jebali et Al. (2006); Taux de change et Inflation : une analyse en modèle VAR du canal du taux de change : Cas de la Tunisie, 23 p.

- Taylor, John B. (2000), “Low inflation, pass-through, and the pricing power of firms”, European Economic Review 44(7): 1389-1408.

- Word Development Indicator (2007), Data of African Development Indicator,CD-Rom