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

WPIEA2012141 Image
Price:  $18.00

Author/Editor: Ivohasina Fizara Razafimahefa
Release Date: © June, 2012
ISBN : 978-1-47550-398-2
Stock #: WPIEA2012141
English
Stock Status: On back-order

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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.

Taxonomy

Balance of trade , Economic policy , Exports , Foreign exchange , Imports , Inflation , International trade , Monetary policy




More publications in this series: Working Papers


More publications by: Ivohasina Fizara Razafimahefa