A Literature Survey on Proposed African Monetary Unions

Simplice Asongu, Jacinta Nwachukwu () and Vanessa Tchamyou ()
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Jacinta Nwachukwu: Coventry University, UK

No 15/042, Research Africa Network Working Papers from Research Africa Network (RAN)

Abstract: This study provides a survey of recent advances in the literature on proposed African monetary unions. The survey comprises about 60 empirical papers published during the past fifteen years. Four main strands are discussed individually and collectively, notably, the proposed: West African Monetary Zone (WAMZ), East African Monetary Union (EAMU), Southern African Monetary Union (SAMU) and African Monetary Union (AMU). We observe a number of issues with establishing the feasibility and/or desirability of potential monetary unions, inter alia, variations in: choice of variables, empirical strategies, sampled countries and considered periodicities. We address this ambiguity by reviewing studies with scenarios that are consistent with Hegelian dialectics and establish selective expansion as the predominant mode of monetary integration. Some proponents make cases for strong pegs and institutions as viable alternatives to currency unions. Using cluster analysis, disaggregating panels into sub-samples and distinguishing shocks from responses in the examination of business cycle synchronisation provide more subtle policy implications. We caution that for inquiries using the same theoretical underpinnings, variables and methods just by modifying the scope/context and periodicity may only contribute to increasing the number of conflicting findings. Authors should place more emphasis on new perspectives and approaches based on caveats of, and lessons from the European Monetary Union (EMU) and CFA zones.

Keywords: Currency Area; Policy Coordination; Africa (search for similar items in EconPapers)
JEL-codes: F15 F36 F42 O55 P52 (search for similar items in EconPapers)
Pages: 27
Date: 2015-09
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Citations: View citations in EconPapers (1)

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http://publications.resanet.org/RePEc/abh/abh-wpap ... -Monetary-Unions.pdf Revised version, 2017 (application/pdf)

Related works:
Journal Article: A LITERATURE SURVEY ON PROPOSED AFRICAN MONETARY UNIONS (2017)
Working Paper: A Literature Survey on Proposed African Monetary Unions (2015)
Working Paper: A Literature Survey on Proposed African Monetary Unions (2015)
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