01999cas a2200253 a 4500 AALejournalIMF003227 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451961058 1018-5941 BD-DhAAL BD-DhAAL Bazzoni, Stefania. Alternative Exchange Rate Strategies and Fiscal Performance in Sub-Saharan Africa / Stefania Bazzoni, Karim Nashashibi. Washington, D.C. : International Monetary Fund, 1993. 1 online resource (86 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper investigates the relationship between fiscal performance in 28 sub-Saharan African countries over the 1980-91 period with movements in the exchange rates, the terms of trade, and other macroeconomic aggregates. It finds that the tax base in most of these countries is heavily dependent on imports and import substitutes. Consequently, an overvaluation of the exchange rate in countries which adopted a fixed exchange rate strategy undermines the tax base and results in a widening of the fiscal deficit when the purpose of the strategy is to restore the real exchange rate to its equilibrium through fiscal contraction. Those countries which pursued a variable exchange rate strategy failed in attaining price stability, but exchange rate adjustment was critical in contributing to other macroeconomic objectives, particularly fiscal balance, competitiveness, and growth. Mode of access: Internet Nashashibi, Karim. IMF Working Papers; Working Paper ; No. 1993/068 Full text available on IMF http://elibrary.imf.org/view/journals/001/1993/068/001.1993.issue-068-en.xml IMF e-Library