01754cas a2200253 a 4500 AALejournalIMF005740 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451872293 1018-5941 BD-DhAAL BD-DhAAL Kandil, Magda. Determinants of Inflation in GCC / Magda Kandil, Hanan Morsy. Washington, D.C. : International Monetary Fund, 2009. 1 online resource (34 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 Inflationary pressures have heightened in the oil-rich Gulf Cooperation Council (GCC) since 2003. This paper studies determinants of inflation in GCC, using an empirical model that includes domestic and external factors. Inflation in major trading partners appears to be the most relevant foreign factor. In addition, oil revenues have reinforced inflationary pressures through growth of credit and aggregate spending. In the short-run, binding capacity constraints also explain higher inflation given increased government spending. Nonetheless, by targeting supply-side bottlenecks, the increase in government spending is easing capacity constraints and will ultimately help to moderate price inflation. Mode of access: Internet Morsy, Hanan. IMF Working Papers; Working Paper ; No. 2009/082 Full text available on IMF http://elibrary.imf.org/view/journals/001/2009/082/001.2009.issue-082-en.xml IMF e-Library