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Jaunky Chandr Vishal
''Inflation divergence within the SADC''
( 2010, Vol. 30 No.2 )
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.
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
Manuscript Received : Jun 19 2008 Manuscript Accepted : May 03 2010

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