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Successful inflation targeting in Mozambique despite vulnerability to internal and external shocks
Depertment of Economics and Statistics, University of Gothenburg, Sweden.
Linköping University, Department of Management and Engineering, Economics. Linköping University, The Institute of Technology.ORCID iD: 0000-0002-8145-1000
2013 (English)In: Zambia Social Science Journal, ISSN 2079-5521Article in journal (Refereed) Published
Abstract [en]

Inflation has proven to be an important obstacle to successful economic adjustment in many countries. Despite both internal and external shocks to the economy, Mozambique has succeeded in controlling the inflation to gain high economic growth. This paper provides an econometric analysis of the dynamics behind the experience of Mozambique. Inflation is driven by both a purchasing power parity relation with South Africa and monetary factors. The result indicates that the country is using a crawling peg exchange rate regime.

Place, publisher, year, edition, pages
Newcastle on Tyne, UK: Southern African Institute for Policy and Research , 2013.
Keyword [en]
inflation, purchasing power parity, money market, VAR model
National Category
Economics
Identifiers
URN: urn:nbn:se:liu:diva-90058OAI: oai:DiVA.org:liu-90058DiVA: diva2:611987
Note

A earlier version of this paper was published in Discussion papers No. XXE, October 2011, National Directorate of Studies and Policy Analysis, Ministry of Planning and Development, Republic of Mozambique.

Available from: 2013-03-19 Created: 2013-03-19 Last updated: 2015-06-02

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Sjö, Bo

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CiteExportLink to record
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Citation style
  • apa
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Output format
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