Abdoun, R., 2012, “Sudan’s Inflation Problem: Some Lessons from the Past 30 Years,” IMF Selected Issues (IMF Country Report 12/299).
Debelle, G., Masson, P., Savastano, M., Sharma, S., 1998, “Inflation Targeting as a Framework for Monetary Policy,” IMF Economic Issues No. 15.
Jabrallah, B. H., and Hasan Mohamed, M., 2008, “Determining the lag in the General Price Level’s Response to a Change in the Money Supply in Sudan, 1995-2007” Khartoum, Central Bank of Sudan.
Khan, M., Senhadji, S., 2000, “Threshold Effects in the Relationship Between Inflation and Growth”, IMF Working Paper, WP/00/110.
Mishra, P., Montiel, P., and Spilimbergo, A., 2012, “How Effective Is Monetary Transmission in Low-Income Countries? A Survey of the Empirical Evidence,” IMF Working Paper, WP/12/143.
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Prepared by Haiyan Shi. The author would like to thank the Sudanese authorities for sharing the data, seminar participants at the Central Bank of Sudan for useful comments, and Yi Liu, Patricia Poggi and Nour Mohamad Ibrahim for excellent assistance.
In Sudan, the process of calculating return on most government securities depends on the audited accounts certified by the authorized bodies. The securities issued by the Central Bank of Sudan are based on ljara mode, where its return is determined in advance.
Khan and Senhadji (2000) have shown that high inflation would have a negative impact on growth after exceeding a threshold which is 7-11 percent for developing countries.
When there is a multiple exchange rate regime, the official exchange rate may not be the relevant variable but the parallel market rate.