TY - BOOK ID - 136676661 TI - Exchange Rate and Output Fluctuations in the Small Open Economy of Mauritius AU - Bastos, Fabiano AU - Angelo Divino, Jose PY - 2009 PB - Washington, D.C., The World Bank, DB - UniCat KW - Banking sector KW - Capital base KW - Currencies and Exchange Rates KW - Debt Markets KW - Economic Stabilization KW - Economic Theory and Research KW - Emerging Markets KW - Exchange rates KW - Exchange rRate KW - Export performance KW - Finance and Financial Sector Development KW - Human capital KW - Inflation KW - Interest rate KW - Interest rates KW - International capital KW - International capital markets KW - Macroeconomic management KW - Macroeconomic variables KW - Macroeconomics and Economic Growth KW - Monetary policy KW - Open economy KW - Policy response KW - Preferential market access KW - Private Sector Development KW - Real exchange rate KW - Trading UR - https://www.unicat.be/uniCat?func=search&query=sysid:136676661 AB - The authors estimate a VAR and compute generalized impulse response to analyze the joint dynamics of four key macroeconomic variables in the small open economy of Mauritius. Results suggest that nominal exchange rate and interest rate have limited ability to impact output growth over the medium-run. Large error bands hinder analysis of the inflation output trade-off, but evidence points to a weak relationship in the short run as well. These findings are used to shed some light into the policy response to the current worldwide economic slowdown affecting Mauritius. ER -