Do monetary policy outcomes promote stability in fragile settings?

Oumar Diallo, Steve Gui-Diby and Patrick Imam ()

Applied Economics, 2024, vol. 56, issue 4, 483-499

Abstract: This paper assesses how monetary policy outcomes affect fragility. Diving into the universe of the most prominent combinations of pursued monetary policy objectives across fragile settings, we examine the relationships between monetary policy and fragility, and find the combination of reduction of inflation and lower unemployment to be the one that delivers the highest payoff in terms of promoting peace and cohesion. Setting aside the challenges of monetary policy transmission, results from our analysis broadly confirm the above ‘winning’ combination, with low inflation as a primary desired outcome and low unemployment rate as a secondary one. We also carry out a series of robustness tests, which confirm our findings. Overall, our results lend credence to the importance of paying attention – in the context of reducing fragility – to monetary policy outcomes.

Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/00036846.2023.2168612 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Do Monetary Policy Outcomes Promote Stability in Fragile Settings? (2022)
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:taf:applec:v:56:y:2024:i:4:p:483-499

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEC20

DOI: 10.1080/00036846.2023.2168612

Access Statistics for this article

Applied Economics is currently edited by Anita Phillips

More articles in Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().