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| Jaunky Chandr Vishal |
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| ''Inflation divergence within the SADC'' |
| ( 2010, Vol. 30 No.2 ) |
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| 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. |
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| Keywords: PPP, Inflation Convergence, Panel Unit Root Tests, SADC. |
JEL: E3 - Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data)
F3 - International Finance: General |
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| Manuscript Received : Jun 19 2008 | | Manuscript Accepted : May 03 2010 |
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