Inflation Dynamics In Sudan: Evidence From Symmetric Ardl Approach

Sudan has experienced high and folatile rates of inflation in recent years.This paper analyzes the underlying determinants of dynamics of inflation in the Sudanover the period 1990-2022 using a single equation model.The findings of the study suggest that inflating in the Sudan is mainly a monetary phenomenon represented by money growth and exchange rate changes.Our empirical result confirms the prominent role of money supply and exchange rate in driving inflation in the Sudan in both short run and long run This underscores the need to manage money supply, exchange rate to control domestic prices.Further, we find that inertial factors have persistent effects on the dynamics of inflationThis indicates that past realization of inflation plays a considerable role of the variance of inflation in the Sudan.