The Determinants of Inflation in Kuwait: An Empirical Investigation

Abdullah E. Alsalman

Article Details

The Determinants of Inflation in Kuwait: An Empirical Investigation

Authors:

Abdullah E. Alsalman

Publisher:

Kuwait University

Journal:

Arab Journal of Administrative Sciences Vol.22 Issue 1, pp.49-72

Document Type:

Article

Publication Date:

1/2015

Document Language:

English

Document ID (Org No.):

2001943655

pISSN:

2957-3521

Keywords:

Abstract:

 We conduct empirical analysis of the main factors influencing inflation in Kuwait. The State of Kuwait is representative of small open economy facing capital mobility. Due to the lack of well-developed domestic financial market and domestic investment opportunities a model of price determination is developed and tested based on supply-side constraints, demand pressures, and spillovers from external factors, as well as the role of second-round effects and entrenched expectations on price adjustments. The main finding useful for the conduct of monetary policy in Kuwait is that money supply, domestic and foreign interest rates, the exchange rate, and world prices are the main determinants of consumer prices in Kuwait. Exchange rate pass-through and money supply shocks come up as the foremost factor and predominates in the inflationary process.

Article Details

The Determinants of Inflation in Kuwait: An Empirical Investigation

Authors:

Abdullah E. Alsalman

Publisher:

Kuwait University

Journal:

Arab Journal of Administrative Sciences Vol.22 Issue 1, pp.49-72

Document Type:

Article

Publication Date:

1/2015

Document Language:

English

Document ID (Org No.):

2001943655

pISSN:

2957-3521

Econometric Model Construction and Estimation

Price Level and Inflation

Monetary Policy

Issues

Article Details

The Determinants of Inflation in Kuwait: An Empirical Investigation

Authors: Abdullah E. Alsalman

Publisher: Kuwait University

Journal: Arab Journal of Administrative Sciences Vol.22 Issue 1, pp.49-72

Document Type: Article

Publication Date: 1/2015

Document Language: English

Document ID (Org No.): 2001943655

pISSN: 2957-3521

Econometric Model Construction and Estimation

Price Level and Inflation

Monetary Policy

Issues

Authors:

Abdullah E. Alsalman

Publisher:

Kuwait University

Journal:

Arab Journal of Administrative Sciences Vol.22 Issue 1, pp.49-72

Document Type:

Article

Publication Date:

1/2015

Document Language:

English

Document ID (Org No.):

2001943655

pISSN:

2957-3521