Republic of Belarus: Selected Issues

Author: International Monetary Fund

Volume/Issue: Volume 2006 Issue 315

Publication date: August 2006

ISBN: 9781451805253

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Topics covered in this book

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Business and Economics , Exports and Imports , Inflation , Economics- Macroeconomics , ISCR , CR , headline CPI inflation , terms-of-trade fluctuation , inflation forecast , inflation development , inflation process , inflation persistence , inflation variability , underlying inflation , Terms of trade , Inflation , Consumer price indexes , Price controls , Factor models , Central Asia , Eastern Europe , Europe , Asia and Pacific

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Summary

The analysis of inflation developments in Belarus is hampered by widespread price controls. Persistence of common inflation is generally higher than that of actual inflation. Factor analysis assumes that covariation among time series can be explained by a few unobserved shocks (factors). The dependent variable in our estimations is growth in real GDP per capita in purchasing power parity (PPP) terms, while the explanatory variable of interest is the annual rate of change in the terms of trade.