EFFETS PERVERS DU COVID-19 SUR LA LIQUIDITE ET L’INFLATION EN RDC

Covid-19 Abnormal Effects On Liquidity and Inflation In DRC

Jacques Lomembe and Remy Ngewampadio

MPRA Paper from University Library of Munich, Germany

Abstract: Since the beginning of 2020, the global economy and, in particular, the DRC’s, have been shaken by the effects of Covid-19 pandemic. However, this pandemic has affected countries asymmetrically. In advanced economies, the slowdown of GDP is accompanied by a decline in main raw materials prices and low inflation. But, in developping countries, such as the DRC’s, an increase of inflation has been associated to the slowdown. This paper analyses the transmission mechanism of the Covid-19 crisis on the inflation in DRC and suggest some ways of mitigation covid-19 economic impacts. An analysis of availlable data’s in DRC’s economy did not identify clearly the link between Covid-19 crisis an money supply from fiscal deficit which is usually the main cause of inflation, maybe because of fiscal maturities in the end of the month, that hide transitory negative fiscal shock which are observe in the middle of each month. The effect of those transitory fiscal deficits is an increase of liquidity and prices pressure.

Keywords: COVID-19 crisis; shock on economy; liquidity; inflation (search for similar items in EconPapers)
JEL-codes: E30 E61 (search for similar items in EconPapers)
Date: 2021-02
New Economics Papers: this item is included in nep-isf, nep-mac and nep-mon
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:109294

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