An Assessment of External Price Competitiveness for Mozambique

WPIEA2009165 Image
Price:  $18.00

Author/Editor: Francis Vitek
Release Date: © August, 2009
ISBN : 978-1-45187-312-2
Stock #: WPIEA2009165
English
Stock Status: Available

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Description

This paper conducts an assessment of external price competitiveness for Mozambique. A variety of indicators suggest that Mozambique has recently lost external price competitiveness with respect to its major trading partners. Consistent with these indicators, an exchange rate assessment indicates that the metical is overvalued by 26 to 41 percent in real effective terms. If sustained, an overvaluation of this magnitude has the potential to retard economic growth and jeopardize external stability, calling for an adjustment of monetary policy to gradually restore external price competitiveness.

Taxonomy

Competition , International trade




More publications in this series: Working Papers


More publications by: Francis Vitek