Monetary Policy with Heterogeneous Agents in Developing Countries: The Case of CEMAC Zone

Franck Xavier Signe, Jean-Christophe Poutineau () and Jean Marie Gankou ()
Additional contact information
Franck Xavier Signe: University of Yaoundé 1 = Université de Yaoundé I
Jean-Christophe Poutineau: CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique
Jean Marie Gankou: UYII / UY II - Université de Yaoundé II [Cameroun] = University of Yaoundé II [Cameroon]

Post-Print from HAL

Abstract: This paper quantitatively evaluates the role of monetary policy in stabilizing fluctuations in a developing country economy such as the CEMAC (Economic and Monetary Community of Central Africa) through two exchange rate regimes, namely the fixed exchange rate regime (scenario 2) and the floating exchange rate regime (scenario 1). This model takes into account farmer and non-farmer assets, farmer and non-farmer production, and climate change damages on farmer production. Using Bayesian estimation techniques via the SSJ (Sequence Space Jacobian) method, we estimate the HANK (Heterogeneous Agent New Keynesian) model constructed under the two exchange rate regimes. Under a floating exchange rate regime, monetary policy plays an important role in attenuating the transmission of asymmetric shocks. Indeed, under this regime, fluctuations are less significant than under the fixed exchange rate regime. CEMAC is more sensitive to climatic shocks than to other shocks under a floating exchange rate regime and the central bank plays a stabilizing role. The authorities must also put in place policies to reduce the impact of climate damage.

Keywords: Climate change; CEMAC zone; New keynesian model; Monetary policy; HANK; Heterogeneity (search for similar items in EconPapers)
Date: 2026
References: Add references at CitEc
Citations:

Published in Computational Economics, 2026, ⟨10.1007/s10614-026-11331-w⟩

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: https://EconPapers.repec.org/RePEc:hal:journl:hal-05570617

DOI: 10.1007/s10614-026-11331-w

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().