Institutions for Macroeconomic Stability in Africa

Jean-Paul Azam

Journal of African Economies, 1999, vol. 8, issue 0, pages 6-29

Abstract: Before discussing the type of institutions that can be designed for overcoming the credibility problem raised by monetary policy, this paper defines macroeconomic instability, showing that inflation is a crucial factor. The relationships between inflation and macroeconomic instability are analysed using a small Australian-type model, with rational expectations, where a too-high rate of inflation entails a continuum of equilibria, regarded as the root of macroeconomic instability. The credibility issue is then discussed in a simple optimal seignorage framework. Different institutional solutions, ranging from currency board to IMF conditionality, are discussed. Copyright 1999 by Oxford University Press.

Date: 1999
References: Add references at CitEc
Citations View citations in EconPapers (2) Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:oup:jafrec:v:8:y:1999:i:0:p:6-29

Ordering information: This journal article can be ordered from
http://www.oup.co.uk/journals

Access Statistics for this article

Journal of African Economies is edited by Marcel Fafchamps

More articles in Journal of African Economies from Centre for the Study of African Economies (CSAE)
Address: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
Contact information at EDIRC.
Series data maintained by Oxford University Press ().