dc.contributor.advisor |
Grimes, A |
en |
dc.contributor.author |
Chan Cheuk-Tafunai, MR |
en |
dc.date.accessioned |
2015-02-27T02:34:05Z |
en |
dc.date.issued |
2014 |
en |
dc.identifier.citation |
2014 |
en |
dc.identifier.uri |
http://hdl.handle.net/2292/24697 |
en |
dc.description |
Full text is available to authenticated members of The University of Auckland only. |
en |
dc.description.abstract |
Samoa’s exchange rate policy since 1985 pegs the Samoan currency, the Tala, to a basket of currencies of its main trading partners. The exchange rate is an important tool that links the country to the rest of the world, with its crucial role amplified for small island developing states (SIDS) like Samoa. Given its direct impact on domestic economic activity, policy makers need to regularly assess the exchange rate regime to ensure the value of the exchange rate remains appropriate for the smooth operation and interaction of the country in world markets as well as minimize any adverse external shocks on the domestic economy. Despite its importance, this paper, to my knowledge, is the first attempt to assess critical empirical issues pertaining to Samoa’s exchange rate framework. This study examines Samoa’s current exchange rate regime by comparing its macroeconomic performance against other SIDS. It also explores two major empirical issues that are of current importance to policymakers, specifically the modelling of the equilibrium exchange rate and measuring the degree of exchange rate pass-through to domestic inflation. Time series data on major macroeconomic indicators for Samoa were collected from official statistical authorities in Samoa as well as data published by international organisations such as the IMF and the World Bank. The preliminary results of this study show that the current pegged exchange regime has contributed to maintaining low inflation in Samoa. Samoa’s real effective exchange rate (REER) was appropriate given its economic fundamentals and generally around its equilibrium level throughout the past 17 years, although recent years indicate a slight misalignment. In addition, the results indicate minimal exchange rate pass-through (ERPT) in Samoa reflecting the rare, small exchange rate changes over the study period. A key conclusion from the empirical analysis is that both the REER and domestic inflation in Samoa are significantly affected by adverse supply shocks to GDP. Overall, this study provides a starting point for the assessment of the exchange rate regime in Samoa and would be a useful tool for regular reviews by policymakers in managing the country’s exchange rate policy. |
en |
dc.publisher |
ResearchSpace@Auckland |
en |
dc.relation.ispartof |
Masters Thesis - University of Auckland |
en |
dc.rights |
Items in ResearchSpace are protected by copyright, with all rights reserved, unless otherwise indicated. Previously published items are made available in accordance with the copyright policy of the publisher. |
en |
dc.rights |
Restricted Item. Available to authenticated members of The University of Auckland. |
en |
dc.rights.uri |
https://researchspace.auckland.ac.nz/docs/uoa-docs/rights.htm |
en |
dc.rights.uri |
http://creativecommons.org/licenses/by-nc-sa/3.0/nz/ |
en |
dc.title |
Exchange Rate Issues in a Small Island Developing State: The Case of Samoa |
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dc.type |
Thesis |
en |
thesis.degree.grantor |
The University of Auckland |
en |
thesis.degree.level |
Masters |
en |
dc.rights.holder |
Copyright: The Author |
en |
pubs.elements-id |
476970 |
en |
pubs.record-created-at-source-date |
2015-02-27 |
en |
dc.identifier.wikidata |
Q112904772 |
|