Determinants of Inflation and Role of Financial and Monetary Policies in Treating it in Yemen, 1990 – 2006.

محددات

Abstract

This study aimed to analyse inflation, assess financial and monetary policies in Yemen since the Yemeni Unity in 1990 until the end of 2006, and show the way for treating it by using a descriptive and analytical approach. This paper was ranged into four sections. The first section addressed the development of inflation indicator of the Yemeni economy (1990 – 2006). The second section addressed the causes of inflation of the Yemeni economy. The third section addressed the effect of inflation on the Yemeni economy, while the fourth one addressed financial and monetary policies for treating the inflation of the Yemeni economy. Accordingly, the study revealed a number of findings; the most important ones are: the problem of inflation was an old phenomenon in the Yemeni economy which appeared in the continuously increase of prices; there were many factors and causes of inflation, notably, misbalance between monetary expenses and the real supply of commodities; the programme of economic repair during the period (1990 – 2006) achieved a relative economy stability but the lack of support for some commodities affected living conditions negatively and expanded poverty in the Yemeni society.