BoU's Governor Emmanuel Tumusiime Mutebile, said the country is presently facing a
supply side shock to agriculture which has increased food prices and may also impede real development in the current fiscal.
We think that the markets are just getting a little concerned over the
supply side shock that could come if the matter escalated in some form or extent," said David Lennox, an analyst at Fat Prophets research house.
t] is contemporaneously correlated with the supply side shock, [[omega].
Using the modified version of Structural Vector Autoregression (SVAR) developed by Enders and Hum (2007), the authors have found a weak policy response to supply side shocks as the correlation coefficient between demand and supply shocks is only 0.
7% yoy in April 2012, inflation started accelerating in the 2H on a new
supply side shock.
These factors are likely to lower inflation rates in many Arab countries, however, inflationary pressures resulted from
supply side shocks in some other Arab countries could limit this declining trend.
5% according to our estimates) in the months to come would not only reflect the weak underlying inflationary pressures but also the impact of temporary
supply side shocks and of a favourable statistical base effect.
Crucially, the HERM1N model allows for the treatment of both demand side shocks and
supply side shocks HERMIN has been applied to Ireland (1989-1993 and 1994-1999, and for the latter period also to Portugal and Spain).
In fact, there were few large
supply side shocks in the first decade of the MPC, and inflation was kept within one per cent either side of the target in all but one month.
Therefore, in the short run, fisheries tend to be subject to the usual economic risks plus the risk of
supply side shocks and the risks inherent in redundant capacity.
1% mom) as underlying inflationary pressures remained low and
supply side shocks were limited.
There were no
supply side shocks while underlying inflationary pressures remained low.
