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Determinants of Inflation in Mozambique

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  • Angel J. Ubide

Abstract

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.

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Bibliographic Info

Paper provided by International Monetary Fund in its series IMF Working Papers with number 97/145.

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Length: 36
Date of creation: 01 Oct 1997
Date of revision:
Handle: RePEc:imf:imfwpa:97/145

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Cited by:
  1. Mosayeb PAHLAVANI & Mohammad RAHIMI, 2009. "Sources of Inflation in Iran: An application of the ARDL Approach," International Journal of Applied Econometrics and Quantitative Studies, Euro-American Association of Economic Development, vol. 9(1).
  2. Addison, Tony & Ndikumana, Leonce, 2001. "Overcoming the Fiscal Crisis of the African State," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  3. Christopher Adam & David Kwimbere & Wilfred Mbowe & Stephen O’Connell, 2012. "Working Paper 163 - Food Prices and Inflation in Tanzania," Working Paper Series 441, African Development Bank.
  4. Loening, Josef L. & Durevall, Dick & Ayalew Birru, Yohannes, 2009. "Inflation Dynamics and Food Prices in an Agricultural Economy: The Case of Ethiopia," Working Papers in Economics 347, University of Gothenburg, Department of Economics.
  5. Dick Durevall & Bo Sjö, 2012. "Working Paper 151 - The Dynamics of Inflation in Ethiopia and Kenya," Working Paper Series 400, African Development Bank.
  6. Tilman Bruck, . "Determinants of Rural Poverty in Post-War Mozambique: Evidence from a Household Survey and Implications for Government and Donor Policy," QEH Working Papers qehwps67, Queen Elizabeth House, University of Oxford.
  7. Zavkidjon Zavkiev, 2005. "Estimating A Model Of Inflation In Tajikistan," CAMA Working Papers 2005-27, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
  8. Tidiane Kinda, 2011. "Modeling Inflation in Chad," IMF Working Papers 11/57, International Monetary Fund.

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