Successful inflation targeting in Mozambique despite vulnerability to internal and external shocks
2013 (English)In: Zambia Social Science Journal, ISSN 2079-5521Article in journal (Refereed) Published
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.
inflation, purchasing power parity, money market, VAR model
IdentifiersURN: urn:nbn:se:liu:diva-90058OAI: oai:DiVA.org:liu-90058DiVA: diva2:611987
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.2013-03-192013-03-192015-06-02