Zimbabwe: Recent Economic Developments, Selected Issues, and Statistical Appendix
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Summary:
The combination of wavering domestic policies, governance problems, and costly deployment of troops to support the Democratic Republic of Congo government has seriously affected economic performance and investor confidence. Exchange rate policy continues to be a key issue in Zimbabwe. This paper conducted an empirical analysis of the determinants of the equilibrium real exchange rate (ERER) for Zimbabwe. The results show that the overvaluation in Zimbabwe is sensitive to lax fiscal policy, suggesting that devaluation needs to be underpinned by a tightening of fiscal policy.
Series:
Country Report No. 2001/013
Subject:
Banking Currencies Exchange rates External position Foreign assets Foreign exchange Money Real exchange rates Tariffs Taxes
English
Publication Date:
January 11, 2001
ISBN/ISSN:
9781451841466/1934-7685
Stock No:
1ZWEEA0022001
Pages:
84
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