Inflation and Oil Based Development: Failure of the Monetarist Model in Saudi Arabia
Abstract
In order to determine a major cause of inflation in Saudi Arabia a monetarist model is developed and found to explain little of the observed pattern of price change. The inadequacy of the monetarist model in explaining the rate of inflation in Saudi Arabia raises the question as to whether or not the money supply is an exogenous variable in the country. If the money supply increases in response to other forces such as industrialization, some inflation will be the inevitable result of the structural factors underlying changes.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jan 01, 1984
- Accession Number
- ADA529245
Entities
People
- Robert E. Looney
Organizations
- Naval Postgraduate School