› › Exchange Rate Pass Through In Sub Saharan African Economies And Its Determinants

An Empirical Assessment of the Exchange Rate Pass-through in Mozambique

Author : International Monetary Fund

Publisher : International Monetary Fund

Page : 34 pages

File Size : 23,2 MB

Release : 2021-05-06

Category : Business & Economics

ISBN : 1513573691

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Book Description

Determining the magnitude and speed of the exchange rate passthrough (ERPT) to inflation has been of paramount importance for policy-makers in developed and emerging economies. This paper estimates the exchange rate passthrough in Mozambique using econometric techniques on a sample spanning from 2001 to 2019. Results suggest that the ERPT is assymetric, sizable and fast, with 50 percent of the exchange rate variations passing through to prices in less than six months. Policy-makers should continue to pursue low and stable inflation and develop a strong track record of prudent macroeconomic policies for the ERPT to decline.



Exchange Rate Pass-Through in Sub-Saharan African Economies and its Determinants

Author : Mr.Ivohasina Fizara Razafimahefa

Publisher : International Monetary Fund

Page : 57 pages

File Size : 30,37 MB

Release : 2012-06-01

Category : Business & Economics

ISBN : 1475503989

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Book Description

This paper analyzes the exchange rate pass-through to domestic prices and its determinants in sub-Saharan African countries. It finds that the pass-through is incomplete. The pass-through is larger following a depreciation than after an appreciation of the local currency. The average elasticity is estimated at about 0.4. It is lower in countries with more flexible exchange rate regimes and in countries with a higher income. A low inflation environment, a prudent monetary policy, and a sustainable fiscal policy are associated with a lower pass-through. The degree of pass-through has declined in the SSA region since the mid-1990s following marked improvements in macroeconomic and political environments.



Exchange Rate Pass-Through in Sub-Saharan African Economies and its Determinants

Author : Mr.Ivohasina Fizara Razafimahefa

Publisher : International Monetary Fund

Page : 57 pages

File Size : 43,53 MB

Release : 2012-06-01

Category : Business & Economics

ISBN : 1475530021

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Book Description

This paper analyzes the exchange rate pass-through to domestic prices and its determinants in sub-Saharan African countries. It finds that the pass-through is incomplete. The pass-through is larger following a depreciation than after an appreciation of the local currency. The average elasticity is estimated at about 0.4. It is lower in countries with more flexible exchange rate regimes and in countries with a higher income. A low inflation environment, a prudent monetary policy, and a sustainable fiscal policy are associated with a lower pass-through. The degree of pass-through has declined in the SSA region since the mid-1990s following marked improvements in macroeconomic and political environments.



Regional Economic Outlook, May 2005, Sub-Saharan Africa

Author : International Monetary Fund

Publisher : International Monetary Fund

Page : 102 pages

File Size : 12,20 MB

Release : 2005-05-31

Category : Business & Economics

ISBN :

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Book Description

This first, annual issue of Regional Economic Outlook: Sub-Saharan Africa analyzes economic, trade, and institutional issues in 2004, and prospects in 2005, for the 42 countries covered by the IMF African Department (for data reasons, Eritrea and Liberia are excluded). Topics examined include responses to exogenous shocks, growth performance and growth-enhancing policies, and the effectiveness of regional trade arrangements. Detailed aggregate and country data (as of February 24, 2005) are provided in the appendix.



The Informal Economy in Sub-Saharan Africa

Author : Leandro Medina

Publisher : International Monetary Fund

Page : 31 pages

File Size : 40,20 MB

Release : 2017-07-10

Category : Business & Economics

ISBN : 1484309030

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Book Description

The multiple indicator-multiple cause (MIMIC) method is a well-established tool for measuring informal economic activity. However, it has been criticized because GDP is used both as a cause and indicator variable. To address this issue, this paper applies for the first time the light intensity approach (instead of GDP). It also uses the Predictive Mean Matching (PMM) method to estimate the size of the informal economy for Sub-Saharan African countries over 24 years. Results suggest that informal economy in Sub-Saharan Africa remains among the largest in the world, although this share has been very gradually declining. It also finds significant heterogeneity, with informality ranging from a low of 20 to 25 percent in Mauritius, South Africa and Namibia to a high of 50 to 65 percent in Benin, Tanzania and Nigeria.



Determinants and Macroeconomic Impact of Remittances in Sub-Saharan Africa

Author : Mr. Raju Jan Singh

Publisher : International Monetary Fund

Page : 29 pages

File Size : 50,89 MB

Release : 2009-10-01

Category : Business & Economics

ISBN : 1451917848

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Book Description

The paper investigates the determinants and the macroeconomic role of remittances in sub-Saharan Africa, assembling the most comprehensive dataset available so far on remittances in the region and incorporating data on the diaspora. It finds that remittances are larger for countries with a larger diaspora or when the diaspora is located in wealthier countries, and that they behave countercyclically, consistent with a role as a shock absorber. Although the effect of remittances in growth regressions is negative, countries with well functioning domestic institutions seem nevertheless to be better at unlocking the potential for remittances to contribute to faster economic growth.



Growth in Sub-Saharan Africa

Author : Mr.Dhaneshwar Ghura

Publisher : International Monetary Fund

Page : 32 pages

File Size : 23,61 MB

Release : 1995-12-01

Category : Business & Economics

ISBN : 1451855753

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Book Description

The paper investigates empirically the determinants of economic growth for a large sample of sub-Saharan African countries during 1981-92. The results indicate that (i) an increase in private investment has a relatively large positive impact on per capita growth; (ii) growth is stimulated by public policies that lower the budget deficit in relation to GDP (without reducing government investment), reduce the rate of inflation, maintain external competitiveness, promote structural reforms, encourage human capital development, and slow population growth; and (iii) convergence of per capita income occurs after controlling for human capital development and public policies.



Evolution of Exchange Rate Regimes

Author : International Monetary Fund

Publisher : International Monetary Fund

Page : 38 pages

File Size : 23,26 MB

Release : 1988-12-09

Category : Business & Economics

ISBN : 1451946945

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Book Description

The IMF Working Papers series is designed to make IMF staff research available to a wide audience. Almost 300 Working Papers are released each year, covering a wide range of theoretical and analytical topics, including balance of payments, monetary and fiscal issues, global liquidity, and national and international economic developments.



FinTech in Sub-Saharan African Countries

Author : Mr.Amadou N Sy

Publisher : International Monetary Fund

Page : 61 pages

File Size : 43,80 MB

Release : 2019-02-14

Category : Business & Economics

ISBN : 1484385667

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Book Description

FinTech is a major force shaping the structure of the financial industry in sub-Saharan Africa. New technologies are being developed and implemented in sub-Saharan Africa with the potential to change the competitive landscape in the financial industry. While it raises concerns on the emergence of vulnerabilities, FinTech challenges traditional structures and creates efficiency gains by opening up the financial services value chain. Today, FinTech is emerging as a technological enabler in the region, improving financial inclusion and serving as a catalyst for the emergence of innovations in other sectors, such as agriculture and infrastructure.



Exchange Rate Misalignment in Developing Countries

Author : Sebastian Edwards

Publisher : Johns Hopkins University Press

Page : 110 pages

File Size : 16,91 MB

Release : 1988

Category : Business & Economics

ISBN :

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Book Description

This article analyzes the theory of equilibrium real exchange rates and defines misalignment as a deviation of the real exchange rate (RER) from its equilibrium level. The role of macroeconomic policies is then analyzed under three alternative nominal exchange rate regimes: predetermined nominal exchange rates; floating nominal rates; and dual or black market nominal exchange rates. This discussion points out how inconsistent macroeconomic policies often lead to real exchange rate misalignment. Corrective measures, including nominal devaluation and several alternative approaches, are then evaluated.