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

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 200...

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Detalles Bibliográficos
Formato: Revista
Idioma:English
Publicado: Washington, D.C. : International Monetary Fund, 2021.
Series:IMF Working Papers; Working Paper ; No. 2021/132
Subjects:
Acceso en liña:Full text available on IMF
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245 1 3 |a An Empirical Assessment of the Exchange Rate Pass-through in Mozambique. 
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520 3 |a 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. 
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650 7 |a Foreign Exchange  |2 imf 
650 7 |a Inflation  |2 imf 
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650 7 |a Price Level  |2 imf 
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