Sub-Saharan Africa Faces Inflation, Output, and Unemployment Challenges
The study looked at how inflation, output, and unemployment are connected in Sub-Saharan Africa. In the short term, high inflation is linked to high unemployment, and low output is linked to high unemployment. In the long term, high unemployment is linked to high output. This suggests that when the economy is slow, there is less demand for goods and services, leading to high unemployment. But in the long run, changes in productivity can affect unemployment. In all countries studied, both past and expected inflation were linked to higher inflation, with expected inflation having a bigger impact. This means that inflation in these countries is more influenced by future expectations.