Social Sciences
4 years ago

Malawi's Exchange Rate Stability Linked to Government Spending and Economic Growth

RePEc: Research Papers in Economics
Estimation of the Equilibrium Real Exchange Rate for Malawi
Johan Mathisen

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The study estimated Malawi's equilibrium real exchange rate based on economic factors. It showed that government spending and economic growth influence the exchange rate. After a shock, the exchange rate quickly returns to its equilibrium level, taking about 11 months.