Zita, Samuel; Gupta, Rangan - In: The IUP Journal of Monetary Economics VI (2008) 4, pp. 63-90
This paper investigates the ability of the Dornbusch (1976) sticky-price model for the nominal metical-rand exchange rate, over the period 1994:1-2005:4 in explaining the exchange rate movements of Mozambique. Based on the model, the authors find that there is a stable relationship between the...