Inflation Dynamics in Post-Independence Rwanda

Deogratius W.H. Kimolo (), Nicholas Odhiambo and Sheilla Nyasha ()
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Deogratius W.H. Kimolo: University of South Africa (UNISA), Pretoria, South Africa
Sheilla Nyasha: University of South Africa (UNISA), Pretoria, South Africa

Ovidius University Annals, Economic Sciences Series, 2023, vol. XXIII, issue 2, 105-116

Abstract: This study examines the inflation dynamics in Rwanda from the 1970s to 2021, focusing on policies, trends, challenges, and opportunities in managing inflation. Secondary data sources were used for analysis. The findings show that Rwanda has adopted a multi-faceted approach to inflation control, including macroeconomic policies, economic diversification, and infrastructure investment. The study identifies three distinct episodes of high inflation in the 1970s, early 1990s, and 1994. Since the early 2000s, inflation trends have been erratic, with notable episodes in 2004, 2008-2009, 2012, and 2020. Challenges in managing inflation include import reliance, weak monetary policy transmission, and vulnerability of the agriculture sector. Opportunities for Rwanda lie in economic diversification, improved coordination between fiscal and monetary policy, and sound macroeconomic policies. The study emphasizes the need for a comprehensive approach to inflation management, considering Rwanda's unique circumstances, to achieve stability and inclusive growth through sound policies, diversification, and infrastructure investment.

Keywords: Price Level; Inflation; Deflation; Rwanda (search for similar items in EconPapers)
JEL-codes: E31 E52 O43 O55 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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Working Paper: Inflation dynamics in post-independence Rwanda (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:ovi:oviste:v:xxiii:y:2023:i:2:p:105-116

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