A Short-run Schumpeterian Trip to Embryonic African Monetary Zones

Simplice Asongu

No 12/001, Working Papers of the African Governance and Development Institute. from African Governance and Development Institute.

Abstract: With the spectre of the Euro crisis looming substantially large and scaring potential monetary unions, this study is a short-run trip to embryonic African monetary zones to assess the Schumpeterian thesis for positive spillovers of financial services on growth. Causality analysis is performed with seven financial development and three growth indicators in the proposed West African Monetary Zone (WAMZ) and East African Monetary Zone (EAMZ). The journey is promising for the EAMZ and lamentable for the WAMZ. Results of the EAMZ are broadly consistent with the traditional discretionary monetary policy arrangements while those of the WAMZ are in line with the non-traditional strand of regimes in which, policy instruments in the short-run cannot be used to offset adverse shocks to output. Policy implications are discussed.

Keywords: Finance; Growth; Africa (search for similar items in EconPapers)
JEL-codes: E50 G20 O10 O55 (search for similar items in EconPapers)
Pages: 20
Date: 2012-12-01
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Citations: View citations in EconPapers (1)

Published in Economics Bulletin

Downloads: (external link)
http://www.afridev.org/RePEc/agd/agd-wpaper/A-Schu ... n-Monetary-Zones.pdf Revised version, 2013 (application/pdf)

Related works:
Journal Article: A Short-run Schumpeterian Trip to Embryonic African Monetary Zones (2013)
Working Paper: A Short-run Schumpeterian Trip to Embryonic African Monetary Zones (2012)
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