Research Paper No. 1: Inflation and Exchange Rates
- Inflation in Haiti is significantly influenced by exchange rate depreciations.
- Monetary policy plays a crucial role in managing inflation and exchange rate stability.
- The study identifies specific transmission mechanisms between inflation and exchange rates.
- The VEC model provides insights into the dynamic interactions between key macroeconomic variables.
This research paper investigates the relationship between inflation and exchange rates in Haiti, employing econometric models to analyze monthly data from 1997 to 2007. It examines the impact of inflation on exchange rate fluctuations, considering factors such as monetary policy, exchange rate regimes, and economic conditions. The study uses Vector Error Correction (VEC) models and Granger causality tests to assess the dynamic interactions between these variables. The findings provide insights into the transmission mechanisms of inflation and the effectiveness of monetary policy in stabilizing prices and exchange rates in the Haitian context.
How to cite
Bank of the Republic of Haiti (BRH), 2008, Research Paper No. 1: Inflation and Exchange Rates, https://www.brh.ht/wp-content/uploads/2018/08/cahier_0108.pdf