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Inflation and economic activity in Suriname

Journal of Economics Library

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Title Inflation and economic activity in Suriname
 
Creator OOFT, Gavin D.M.;

Research Department of the Central Bank of Suriname
 
Subject Economic growth; Inflation; Time-series models.
C32; E31; E47.
 
Description Abctract. Maintaining a low rate of inflation and sustainable economic growth are at the core of monetary policymaking. Price stability is considered a condition for a healthy macroeconomic environment which promotes sustainable growth and a low rate of inflation is necessary to maintain stability in the financial sector as well as to boost investment activities. Motivated by the largely-discussed relationship between inflation and output, this paper examines this relationship for the economy of Suriname over the period 1975 to 2015, utilizing a vector autoregressive model and impulse response functions. The findings of the study reveal how the various sources of inflation impact on the economy of Suriname. Domestic price shocks and money-supply shocks, in particular, seem to substantially impact on economic activity. Exchange-rate shocks are detrimental to domestic prices. Based on the findings of this study, it is highly recommended for the Central Bank of Suriname to continue its prudent monetary policies in order to maintain a stable exchange rate and price stability. The study advocates for maintaining a healthy macroeconomic climate with price stability, which is a crucial condition for Suriname to follow a sustained path for economic growth and development.Keywords. Economic growth, Inflation, Time-series models.JEL. C32, E31, E47.
 
Publisher Journal of Economics Library
 
Contributor —
 
Date 2019-10-17
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://www.kspjournals.org/index.php/JEL/article/view/1930
10.1453/jel.v6i3.1930
 
Source Journal of Economics Library; Vol 6, No 3 (2019): September; 168-185
2149-2379
 
Language eng
 
Relation http://www.kspjournals.org/index.php/JEL/article/view/1930/1978
 
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http://creativecommons.org/licenses/by-nc/4.0