“The present paper has grown out of two separate issues. These are, on the one hand, the specific preparations for a forthcoming reconstruction of the Macro Economic Model for Botswana (MEMBOT), and on the other, the general debate about Botswana’s exchange rate regime. Responding to these issues, a simple exchange rate model was constructed, and used to analyse a number of alternative exchange rate scenarios. In the first instance these efforts were undertaken in order to examine the feasibility of including a separate exchange rate sub-model in the MEMBOT project.”
