Determinants Of Inflation In Mozambique

Download or read book Determinants of Inflation in Mozambique written by Mr.Angel J. Ubide and published by International Monetary Fund. This book was released on 1997-10-01 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: Mozambique’s inflation rate was consistently high until 1995, and then plunged in 1996 to 17 percent from 70 percent in 1994. This paper suggests that Mozambique’s inflation pattern is a combination of a “fundamental” trend set by economic policies, seasonal behavior that follows closely that of agriculture, and a collection of irregular events that corresponds mainly to agroclimatic conditions. The empirical results show that the marked tightening of monetary policy in 1996 was the ultimate reason for the control of inflation in 1996, and hence seems to correspond to a change in the “fundamental” trend of inflation that may have long-lasting effects.