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Issues in the Assessment of the Exchange Rates of Industrial Countries

Author : International Monetary Fund
Publisher : International Monetary Fund
Page : 40 pages
File Size : 30,89 MB
Release : 1984-07-08
Category : Business & Economics
ISBN : 1557750769

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In its surveillance activities, the Fund is frequently confronted with the difficult problem of how to identify exchange rate behavior that is unrelated to underlying economic and financial conditions and, consequently, should be viewed with concern from a national or international standpoint. This paper considers the various issues related to this problem as it pertains to industrial countries, both those that have independently floating exchange rates and those that operate under other exchange arrangements.

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

Author : International Monetary Fund
Publisher : International Monetary Fund
Page : 34 pages
File Size : 31,74 MB
Release : 2021-05-06
Category : Business & Economics
ISBN : 1513573691

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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.