Effects of exchange relative prices on macroeconomic stability in sub-Saharan African countries

Autor:	Irifaar SOME
Jazyk:	angličtina
Rok vydání:	2024
Předmět:	sub-saharan africa relative prices macroeconomic stability economic growth terms of trade Business HF5001-6182 Economic theory. Demography HB1-3840 Economics as a science HB71-74
Zdroj:	Theoretical and Applied Economics, Vol XXXI, Iss 2, Pp 87-106 (2024)
Druh dokumentu:	article
ISSN:	1841-8678 1844-0029
Popis:	This paper analyzes the effects of relative prices on macroeconomic stability in sub- Saharan African countries by considering inflation, real effective exchange rate, government deficit, and a composite index of macroeconomic stability using techniques combining a panel Vector Autoregressive (VAR) and the generalized method of moments (GMM) for 30 countries over the period 1991-2017. The results show that the terms of trade (external relative prices) have positive effects on the real exchange rate, the reduction of the public deficit, and on macroeconomic stability in general. Impulse response function analysis and variance decomposition confirm these different results.
Databáze:	Directory of Open Access Journals
Externí odkaz:	https://doaj.org/article/015539a6078849b9a66946c958533db8 Zobrazit plný text záznamu View record in DOAJ Plný text ve formátu PDF