Empirical Performances of Divisia versus Traditional Monetary Aggregates in BEAC and BCEAO

Mondjeli Mwa Ndjokou1

Working Papers from African Economic Research Consortium

Abstract: The purpose of the paper is to evaluate empirical performances of Divisia relative to traditional monetary aggregates in terms of growth and inflation within the period 1992.1- 2009.4 in BEAC2 and BCEAO3 . The methodology of the paper is focused on variance decomposition analysis derived from VAR/VECM specification to evaluate the contribution to price level and real GDP's fluctuations of each type of monetary aggregate. The following conclusions are derived from the empirical analysis. Traditional monetary aggregates have better empirical performances. In BEAC, traditional M2 perform better in explaining price and real GDP fluctuations. The variations of price level are mostly due to traditional monetary aggregate M1 while simple sum monetary aggregate M2 is the best indicator of real GDP in BCEAO.

Date: 2021-01-20
Note: African Economic Research Consortium
References: Add references at CitEc
Citations:

Downloads: (external link)
https://publication.aercafricalibrary.org/handle/123456789/1283 (application/pdf)

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:aer:wpaper:31c2a991-bee4-40dc-9cf5-b16fc1bb7b34

Access Statistics for this paper

More papers in Working Papers from African Economic Research Consortium Contact information at EDIRC.
Bibliographic data for series maintained by Daniel Njiru ().