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Inflation and Conflict in Iraq [electronic resource] : The Economics of Shortages Revisited, Kock, Udo.

Author/Creator:
Kock, Udo.
Publication:
Washington, D.C. : International Monetary Fund, 2010.
Format/Description:
Government document
Book
1 online resource (24 p.)
Series:
IMF eLibrary
IMF Working Papers; Working Paper No. 10/159.
IMF Working Papers; Working Paper No. 10/159
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Local subjects:
Black market. (search)
Central bank. (search)
Commodity markets. (search)
Commodity prices. (search)
Demand for money. (search)
Foreign currency. (search)
Foreign exchange. (search)
High inflation. (search)
Inflation. (search)
Inflation dynamics. (search)
Inflation equation. (search)
Inflation rate. (search)
Inflationary pressures. (search)
Macroeconomic analysis. (search)
Macroeconomic stability. (search)
Monetary fund. (search)
Monetary policy. (search)
Monetary transmission. (search)
Monetary transmission mechanism. (search)
Money growth. (search)
Money supply. (search)
Oil product prices. (search)
Price inflation. (search)
Price level. (search)
Rate of inflation. (search)
Shadow economy. (search)
Terms of trade. (search)
Value of money. (search)
Iraq. (search)
Summary:
Containing inflation has turned out to be one of the most challenging aspects of economic management in Iraq. This paper posits that conventional as well as unconventional factors explain inflation dynamics in the recent past. We build a theoretical model based on the insights into the workings of socialist economies under supply shortages provided by Shleifer and Vishny (1992) to help explain price dynamics. In the model, strategic behavior of the fuel distribution monopolist results in fuel shortages, with implications for fuel and non-fuel inflation. A number of step-wise adjustments of administered prices for fuel products since December 2005 offer an interesting experiment to help study this behavior. Our findings show that inflation may have been influenced by shortages in fuel and non-fuel commodity supplies, which themselves are driven by violence and rent-seeking.
Notes:
Description based on print version record.
Contributor:
Grigorian, David A.
Kock, Udo.
Other format:
Print Version:
ISBN:
1455201421:
9781455201426
ISSN:
1018-5941
Publisher Number:
10.5089/9781455201426.001
Access Restriction:
Restricted for use by site license.