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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.

Suggested Citation

  • Angel J. Ubide, 1997. "Determinants of Inflation in Mozambique," IMF Working Papers 97/145, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:97/145
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. Addison, Tony & Ndikumana, Leonce, 2001. "Overcoming the Fiscal Crisis of the African State," WIDER Working Paper Series 012, 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. Tidiane Kinda, 2011. "Modeling Inflation in Chad," IMF Working Papers 11/57, International Monetary Fund.
    5. repec:ilo:ilowps:486556 is not listed on IDEAS
    6. Raghbendra Jha, 2008. "Inflation targeting in India: issues and prospects," International Review of Applied Economics, Taylor & Francis Journals, vol. 22(2), pages 259-270.
    7. Dick Durevall & Bo Sjö, 2012. "Working Paper 151 - The Dynamics of Inflation in Ethiopia and Kenya," Working Paper Series 400, African Development Bank.
    8. 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).
    9. Tilman Bruck, "undated". "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.

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