Exploring the Correlation Between Monetary Policy and Food Inflation in Zambia

Author(s)	Sidney Kawimbe, Loti Saidi, Chilinda Muya, Rumbidzai Chileya
Country	Zambia
Abstract	his relationship isolating food inflation from overall inflation to provide better policy implications that can enhance welfare for the Zambian populace. The Autoregressive Distributed Lag Model and the Error Correction Model were employed for the short run and long run analysis respectively. The findings postulate that there exists a significant relationship between monetary policy and food inflation. The monetary policy rate and the growth in the broad money have a destabilising relationship with food inflation. The depreciation in the domestic currency to foreign currency increase food inflation in the long run. Whereas the exchange rate channel plays a role of greater significance amongst the studied monetary policy tools. Inflation targeting, although significant, adds inflationary pressure of domestic food inflation, highlighting the need for stern policies that can individually factor in food inflation.
Keywords	Inflation, Monetary Policy, Inflation, Monetary Policy,
Field	Mathematics > Economy / Commerce
Published In	Volume 6, Issue 3, May-June 2024
Published On	2024-05-19
Cite This	Exploring the Correlation Between Monetary Policy and Food Inflation in Zambia - Sidney Kawimbe, Loti Saidi, Chilinda Muya, Rumbidzai Chileya - IJFMR Volume 6, Issue 3, May-June 2024. DOI 10.36948/ijfmr.2024.v06i03.15637
DOI	https://doi.org/10.36948/ijfmr.2024.v06i03.15637
Short DOI	https://doi.org/gtvt4w

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