Democratic Republic of São Tomé and Príncipe

Democratic Republic of São Tomé and Príncipe

Selected Issues

by International Monetary Fund

27 pages· 2008· ISBN 9781451993653
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This Selected Issues paper for the Democratic Republic of São Tomé and Príncipe (STP) underlies the recent upward trend in inflation that was heavily influenced by external factors. The policy mix to achieve price stability requires effective control of money supply and fiscal restraint. As in other developing countries, operational targets for monetary policy need to be considered, taking into account STP’s specific circumstances. Weak financial intermediation limits the effectiveness of some monetary instruments such as short-term interest rates.

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