Understanding the Inflationary Process in the GCC Region: The Case of Saudi Arabia and Kuwait

This paper investigates the factors that affect inflation in the GCC region by examining the inflationary processes in Saudi Arabia and Kuwait. The paper utilizes a model that accounts for foreign factors affecting inflation, such as trading partners'' inflation and exchange rate pass-thro...

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Bibliographic Details
Main Author: Alogeel, Hesham (Author)
Format: Electronic eBook
Language:English
Published: Washington, D.C International Monetary Fund 2008
Series:IMF Working Papers Working Paper No. 08/193
Subjects:
Online Access:UBW01
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Summary:This paper investigates the factors that affect inflation in the GCC region by examining the inflationary processes in Saudi Arabia and Kuwait. The paper utilizes a model that accounts for foreign factors affecting inflation, such as trading partners'' inflation and exchange rate pass-through effect, as well as domestic influences. The analysis concludes that, in the long run, higher inflation in trading partners'' countries is the main driving force for inflation in the two countries, with significant but lower contributions from the exchange rate pass-through effect and oil prices. Demand and money supply shocks affect inflation in the short run
Item Description:Includes bibliographical references
Physical Description:1 Online-Ressource (37 p)
ISBN:1451870515
9781451870510

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