Navigating post-Covid-19 economic recovery in WAEMU: A DSGE approach

Abdoulaye Aboubacari Mohamed, Jevuks Matheus de Araujo and Alejandro C. García Cintado

Economic Analysis and Policy, 2024, vol. 84, issue C, 707-724

Abstract: This paper evaluates the effectiveness of economic policies implemented by fiscal and monetary authorities against the Covid-19 pandemic in the West African Economic and Monetary Union (WAEMU). To that end, we employ a medium-scale DSGE model that regards WAEMU as a closed system, made up of a continuum of small open economies. Our simulations reveal that, while an ample battery of fiscal and monetary measures was deployed to counter the challenges posed by Covid-19 and support economic recovery, fiscal policy interventions proved more effective in the short run. Fiscal measures mitigated the pandemic’s economic fallout across all households, providing immediate relief and promoting a swift rebound.

Keywords: Fiscal policy; Monetary policy; Covid-19; Economic recovery; DSGE model; WAEMU (search for similar items in EconPapers)
JEL-codes: C63 D58 E61 E63 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:84:y:2024:i:c:p:707-724

DOI: 10.1016/j.eap.2024.08.031

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