| Description |
1 online resource (37 pages) : illustrations |
| Series |
IMF working paper, 2227-8885 ; WP/08/118 |
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IMF working paper ; WP/08/118.
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| Contents |
Table of Contents; Abbreviations and Acronyms; I. Introduction; II. São Tomé and Príncipe-Current Monetary and Exchange Rate Arrangements; A. Economic Structure, Capital Flows, and Trade Pattern; Boxes; 1. Monetary and Exchange Regimes; B. The Monetary History of São Tomé and Príncipe; Figures; 1. São Tomé and Príncipe: Major Trading Partners, 2006; 2. São Tomé and Príncipe: Macroeconomic Indicators, 1950-73; 3. São Tomé and Príncipe: Macroeconomic Indicators, 1980-2006; Tables; 1. São Tomé and Príncipe: Key Macroeconomic Indicators, 1992-2006 |
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C. Money, the Exchange Rate, and Inflation: Econometric Evidence2. São Tomé and Príncipe: Empirical Studies on Money, the Exchange Rate, Inflation, and Currency Substitution; 4. São Tomé and Príncipe: Foreign Currency Deposits and Credit; III. Potential Benefits and Costs of Alternative Arrangements; A. Potential Benefits of Alternative Regimes; Price Stability; Fiscal Discipline; Trade, Foregin Direct Investment and Growth; 3. Cape Verde: Experience with a Currency Peg to the Euro; 2. Selected African countries: Macroeconomic Performance and Exchange Rate Regimes, 1990-2006 |
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5. Selected African Countries: Macroeconomic Indicators, 1980-2006 ... Financial Sector Surveillance and Development; B. Potential Costs; Loss of Monetary Policy Independence; Loss of Seigniorage; C. The Cost-Benefit Analysis and Initial Conditions; D. The Effects of Large Oil Exports on the Cost-Benefit Analysis; IV. The Choice of Anchor Currency and Other Arrangements; A. The Choice of an Anchor Currency; Gravity Model; 4. Equatorial Guinea: Oil Reserve Management and Membership in the CEMAC; 5. São Tomé and Príncipe: Application of the Gravity Model; Currency Mapping Analysis |
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B. Choosing Between a Monetary Union and a Hard Peg6. São Tomé and Príncipe: Currency Mapping Analysis; C. Prerequisites of a Sustainable Regime Change; V. Conclusions; 7. Liberia's Experience: The Fundamental Importance of Sound Domestic Policies; Appendices; Appendix I; Appendix II; Appendix III; Appendix IV |
| Summary |
This paper assesses São Tomé and Príncipe's monetary and exchange rate arrangements in light of the country's monetary history and the relevant experience of comparable countries in Africa. The study highlights several structural characteristics of São Tomé and Príncipe including its very small size, high degree of openness, extensive use of foreign currencies, and inflexible product and factor markets in the consideration of an appropriate monetary and exchange regime. Firmly anchored currency arrangements, defined in this paper to include memberships in monetary unions or hard pegs, are found to be preferable to the status quo of a managed float. The paper applies statistical methods and takes into account other factors to identify the appropriate anchor currency. It stresses that fiscal discipline and prudent debt management are the main prerequisites for a firmly anchored currency arrangement |
| Notes |
"May 2008." |
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"Prepared by Jian-Ye Wang, Marcio Ronci, Nisreen Farhan, Misa Takebe, and Amar Shanghavi." |
| Bibliography |
Includes bibliographical references (pages 28-30) |
| Notes |
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 MiAaHDL |
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Print version record |
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digitized 2011 HathiTrust Digital Library committed to preserve pda MiAaHDL |
| Subject |
Monetary policy -- Sao Tome and Principe
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Foreign exchange rates -- Sao Tome and Principe
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Foreign exchange rates
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Monetary policy
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Sao Tome and Principe
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| Form |
Electronic book
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| Author |
Wang, Jian-Ye, author.
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International Monetary Fund. African Department.
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| ISBN |
1451914326 |
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9781451914320 |
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9781451869781 |
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1451869789 |
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