This paper presents an empirical investigation of inflation dynamics in Libya over the period 1964–2010, using … cointegration and error correction models. While inflation inertia is found to be a key determinant of consumer price inflation, the … econometric results indicate that government spending, money supply growth, global inflation, and exchange rate pass-through play …

. Inflation is constraining the room for monetary policy easing. Banks’ capital ratios have fallen slightly, but asset quality … structural reforms, fiscal consolidation, and low inflation are critical for a sustained recovery. …

bolstering the economy’s resilience to shocks and fostering productivity growth. Inflation is a priority and monetary policy … cannot fight inflation alone; concerted efforts on other fronts are also necessary. Near-term fiscal policy could better …