Randrianarisoa Radoniaina Tsiory
PhD Student, University of Antananarivo, Antananarivo, Madagascar
Abstract
The purpose of this study is to show that inflation adversely affects the economic performance of Madagascar. In this country, the inflationary environment is persistent. Through a first econometric estimation, it is proved that at some high level, inflation negatively impacts economic growth. Nonetheless, as suggested by many authors, the inflation-growth nexus is not linear. This case is verified for this country as we were able to determine an optimal level of inflation favorable to growth. In a second analysis, we show that an increase in inflation pushes individuals below the poverty line. The adoption of an inflation targeting regime seems to be unavoidable, to effectively and sustainably fight against inflation in Madagascar.
Keywords: inflation, growth, poverty, inflation targeting, monetary policy
Journal Name :
EPRA International Journal of Research & Development (IJRD)

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Published on : 2024-08-26

Vol : 9
Issue : 8
Month : August
Year : 2024
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