Inflation divergence within the SADC

Jaunky Vishal ()
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Jaunky Vishal: University of Mauritius

Economics Bulletin, 2010, vol. 30, issue 2, 1137-1143

Abstract: This study investigates the feasibility of a monetary union in the Southern African Development Community (SADC) by testing for inflation convergence for 11 members. Quarterly data over the period 1992:3 – 2001:4 are employed. Various panel unit root tests are applied to test whether the purchasing power parity (PPP) holds. Overall, strong evidence of a unit root is found. This implies inflation divergence among the SADC members.

Keywords: PPP; Inflation Convergence; Panel Unit Root Tests; SADC. (search for similar items in EconPapers)
JEL-codes: E3 F3 (search for similar items in EconPapers)
Date: 2010-05-03
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