The Determinants Of Monetary Policy Transparency In Sub-Saharan Africa

J D G Nhavira and M K Ocran

Studies in Economics and Econometrics, 2012, vol. 36, issue 1, 79-106

Abstract: he study investigates the contribution of key macroeconomic and institutional variables in shaping the likelihood of choosing a monetary policy transparency regime in Sub-Saharan Africa. Monetary policy transparency refers to political transparency, operational transparency, policy transparency, economic transparency and procedural transparency by a central bank. Whereas monetary policy, on the other hand, refers to the regulation of the money supply and interest rates by a central bank, with the goal of controlling inflation and stabilizing the currency. One of the peculiarities of developing countries is that they lack credibility in their monetary policy because of a lack of transparency. Therefore this study employs the logit model in determining the factors likely to lead to a choice of monetary policy transparency in Sub-Saharan Africa. The results reveal that only four variables; (current account, real output, financial depth and trade openness) out of seven independent variables are the determinants of transparency in Sub-Saharan Africa. The other variables, real interest rate, consumer price index and GDP growth are found to be statistically insignificant.

Date: 2012
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/10800379.2012.12097233 (text/html)
Access to full text is restricted to subscribers.

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:taf:rseexx:v:36:y:2012:i:1:p:79-106

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rsee20

DOI: 10.1080/10800379.2012.12097233

Access Statistics for this article

Studies in Economics and Econometrics is currently edited by Willem Bester

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