Gradual liberalization of key markets: the road to sustainable growth in Mauritius
✍ Scribed by Sunil Kumar Bundoo; Beealasingh Dabee
- Publisher
- John Wiley and Sons
- Year
- 1999
- Tongue
- English
- Weight
- 196 KB
- Volume
- 11
- Category
- Article
- ISSN
- 0954-1748
No coin nor oath required. For personal study only.
✦ Synopsis
Mauritius has achieved sustained economic growth over the past three decades notwithstanding the limited liberalization of its foreign exchange and ®nancial markets which took place even during the adjustment period of 1979±86. Reforms in these markets have in fact been introduced gradually and have been stepped up only as from the 1990s when they were considered to be sustainable. A policy of mild exchange rate depreciation has helped to boost exports and growth; the exchange rate is currently market determined and current and capital transfers have been completely liberalized. In the ®nancial market, credit ceilings have been removed and interest rate controls have given way to open market operations. There has also been improved ®nancial intermediation, in keeping with the McKinnon±Shaw hypothesis.