After decades of high trade restrictions, fiscal distortions, and currency overvaluation, Cameroon implemented important commercial and fiscal policy reforms in 1994. Almost simultaneously, a major devaluation cut the international price of Cameroon's currency in half. This article examines the...

In Cameroon, neither a major devaluation nor a major simplification of the tax structure systematically affected profit margins. But trade liberalization - substantial tariff reductions - clearly signaled change to manufacturers. And devaluation shifted relative prices dramatically in favor of...