01666cas a2200241 a 4500 AALejournalIMF003846 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451862409 1018-5941 BD-DhAAL BD-DhAAL Nachega, Jean-Claude. Fiscal Dominance and Inflation in the Democratic Republic of the Congo / Jean-Claude Nachega. Washington, D.C. : International Monetary Fund, 2005. 1 online resource (44 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper examines the fiscal dominance hypothesis in the Democratic Republic of the Congo (DRC) during 1981-2003, using multivariate cointegration analysis and vector errorcorrection modeling. Empirical results point to strong and statistically significant long-run relationships between budget deficits and seigniorage, and between money creation and inflation. The long-run inflationary impact of budget deficits is robust to the inclusion of output growth or velocity in the inflation and monetary growth equations. The paper offers some policy recommendations for long-term price stability in the DRC. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2005/221 Full text available on IMF http://elibrary.imf.org/view/journals/001/2005/221/001.2005.issue-221-en.xml IMF e-Library