CEU Electronic Theses and Dissertations, 2018
| Author | Pitia, Modi Denis Elikana |
|---|---|
| Title | Could Lack Of Central Bank Independency Result Into Hyperinflation Case Study: South Sudan |
| Summary | South Sudan is one of the newest country in the globe and Africa’s 55th nation that got its independence on 9, July 2011 after a long civil war that lasted for more than twenty-five years. After gaining independence South Sudan economy has been faced with a number of challenges as the government tries to implement its development objectives. On 11 November 2013, the Central Bank of South Sudan made changes to its official exchange rate which was initially pegged to United States dollar by devaluing its currency by 42% and further by 84% in 2015. This act resulted into general increase in the prices of goods and services since the country is import dependent to a large extent. This research paper will try to understand whether the currency devaluation could be a lead cause towards the increased inflation and even hyperinflation in the country. Secondly, the research will also try to investigate the extent to which Central Bank is independent and how the lack of independence helped the emergence of hyperinflation in South Sudan. The research will also try to analyze the inflationary historical aspects of the East African region based on the precolonial and postcolonial times so as to examine other factors that might have caused inflation in the region while addressing the economic growth challenges. The research will also take into consideration a theoretical overview of Sudan and South Sudan economy before and after independence since these two countries were once one. The research paper will finally draw conclusion from different views while trying to investigate the impact of Central Bank independence and currency devaluation in relation to causes of hyperinflation in South Sudan. Suggested policy recommendation will be provided for policy makers. Keywords: Lack of Central Bank Independency, Currency devaluation and Hyperinflation. |
| Supervisor | Julius Horvath |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2018/pitia_modi.pdf |
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