We analyze short-run dynamics of inflation in Ethiopia, using a parsimonious error-correction model fitted with monthly observations. Our findings show that increased money supply and the nominal exchange rate significantly affect inflation in the short-run. Agricultural output shocks, proxied...

This paper uses uniquely matched household, enterprise and community survey data from four major regions in rural Ethiopia to characterize the performance, constraints and opportunities of nonfarm enterprises. The nonfarm enterprise sector is sizeable, particularly important for women, and plays...

Ethiopia has experienced a historically unprecedented increase in inflation, mainly driven by cereal price inflation, which is among the highest in Sub-Saharan Africa. Using monthly data from the past decade, the authors estimate error correction models to identify the relative importance of...

In Japan, the growth rate of the money stock (M2+CDs) has been relatively high since the latter half of the 1990s, exceeding that of nominal GDP, even when the growth rate of the economy remained generally low and prices continued moderate declines. As a result, the amount outstanding of the...

The Japanese economy has been following a recovery path after it hit the bottom in April 1999. Since the fall of 2000, however, the economy has entered an adjustment phase triggered by the abrupt demand contraction in the IT-related sector worldwide, which is a growing industry. One of the...