Inflation in the Ethiopian Economy

Constraints, Drivers, Costs and Policy Options


The book is addressing the key challenges that the Ethiopian economy has been
facing over the last decade – inflation and associated shocks. Inflation
is like cancer. Cancer gradually consumes the body and if unabated
could kill the person. Similarly, inflation if unchecked depletes the
welfare of citizens; distorts the effectiveness of economic policies and
reforms the country is formulating and implementing.
In this book, findings of a rigorous diagnosis of several
macroeconomic variables that contribute to and exacerbate inflation
are presented. The book shows that many sectors and sub-sectors are
contracting due to the inflationary trend, which could lead to
economic stagnation. I believe that the analyses and
recommendations will inform economic policy makers to review the
existing policies and reforms and formulate new ones that could lead
to stable prices.

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