THE PERFORMANCE OF EXCHANGE RATE REGIMES IN THREE SADC COUNTRIES: AN OVERVIEW

Journal of Governance and Regulation

关键词: Southern Africa;    Economic Growth;    Low Income;    and Real Exchange Rate;   

DOI  :  10.22495/jgr_v3_i3_p1

学科分类：社会科学、人文和艺术（综合）

来源: Virtus Interpress

【 摘 要 】

This paper provides an overview of the real exchange rate and economic growth dynamics in three low-income Southern African countries, namely: the Democratic Republic of Congo (DRC), Malawi and Mozambique. Specifically, the paper investigates the nature of exchange rate regimes and the impact that they have on economic growth, as well as the movement of real exchange rates and real GDP from 1970—2010 in these countries. The paper identifies the following trends: Fixed exchange regimes were pursued from the 1960s until the late 1980s and early 1990s in these countries, which were growth-repressing; the countries pursued floating and managed-floating regimes from the 1990s to date, resulting in moderate-to-rapid economic growth. We conclude that liberalised exchange rates, which lead to undervalued currencies in these Southern African countries, were growth-enhancing.

【 授权许可】

CC BY-NC