How Would Monetary Policy Matter In The Proposed African Monetary Unions? Evidence From Output And Prices

Simplice Asongu

The African Finance Journal, 2014, vol. 16, issue 2, 34-63

Abstract: We analyze the effects of monetary policy on economic activity in the proposed African monetary unions. Findings broadly show that: (1) but for financial efficiency in the EAMZ, monetary policy variables affect output neither in the short-run nor in the long-term and; (2) with the exception of financial size that impacts inflation in the EAMZ in the short-term, monetary policy variables generally have no effect on prices in the short-run. The WAMZ may not use policy instruments to offset adverse shocks to output by pursuing either an expansionary or a contractionary policy, while the EAMZ can do with the ‘financial allocation efficiency’ instrument. Policy implications are discussed.

Keywords: Monetary Policy; Banking; Inflation; Output effects; Africa (search for similar items in EconPapers)
JEL-codes: E51 E52 E58 E59 O55 (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (27)

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Related works:
Working Paper: How would monetary policy matter in the proposed African monetary unions? Evidence from output and prices (2013)
Working Paper: How would monetary policy matter in the proposed African monetary unions? Evidence from output and prices (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:afj:journl:v:16:y:2014:i:2:p:34-63

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