Democratic Republic of São Tomé and Príncipe: Selected Issues
IMF Staff Country Reports, September 19, 2008
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- Democratic Republic of São Tomé and Príncipe: Selected Issues
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Bibliographic details
- Published: September 19, 2008
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451835175.002
Overview
- This Selected Issues paper for the Democratic Republic of São Tomé and Príncipe (STP) underlies the recent upward trend in inflation that was heavily influenced by external factors.
- Subject: Central Banks, Expenditure, Inflation, Monetary base, Money, Prices, Revenue administration, Sterilization
- Keywords: Banco Central de São Tomé and Príncipe, CR, development partner, Europe, Inflation, ISCR, Monetary base, São Tomé and Príncipe, Sterilization, Sub-Saharan Africa, tax, tax performance, tax rate, tax system, tax-to-GDP ratio
Findings on inflation and drivers
- Recent upward trend in inflation was heavily influenced by external factors.
- Effective control of money supply and fiscal restraint are required to achieve price stability.
Monetary policy operational targets and constraints
- Operational targets for monetary policy need to be considered, taking into account STP’s specific circumstances.
- Weak financial intermediation limits the effectiveness of some monetary instruments such as short-term interest rates.
Policy recommendations
- Pursue a policy mix focused on:
- Effective control of money supply.
- Fiscal restraint.
- Tailor operational monetary policy targets to STP’s institutional and market circumstances, acknowledging limitations from weak financial intermediation.
Democratic Republic of São Tomé and Príncipe: Selected Issues (IMF Staff Country Reports 2008, Issue 306).