How would monetary policy matter in the proposed African monetary unions? Evidence from output and prices

Simplice Asongu

No 13/013, Working Papers of the African Governance and Development Institute. from African Governance and Development Institute.

Abstract: We analyze the effects of monetary policy on economic activity in the proposed African monetary unions. Findings broadly show that: (1) but for financial efficiency in the EAMZ, monetary policy variables affect output neither in the short-run nor in the long-term and; (2) with the exception of financial size that impacts inflation in the EAMZ in the short-term, monetary policy variables generally have no effect on prices in the short-run. The WAMZ may not use policy instruments to offset adverse shocks to output by pursuing either an expansionary or a contractionary policy, while the EAMZ can do with the ‘financial allocation efficiency’ instrument. Policy implications are discussed.

Keywords: Monetary Policy; Banking; Inflation; Output effects; Africa (search for similar items in EconPapers)
JEL-codes: E51 E52 E58 E59 O55 (search for similar items in EconPapers)
Pages: 33
Date: 2013-01-14
New Economics Papers: this item is included in nep-afr, nep-cba, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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http://www.afridev.org/RePEc/agd/agd-wpaper/How-wo ... -monetary-unions.pdf Revised version, 2013 (application/pdf)

Related works:
Journal Article: How Would Monetary Policy Matter In The Proposed African Monetary Unions? Evidence From Output And Prices (2014)
Working Paper: How would monetary policy matter in the proposed African monetary unions? Evidence from output and prices (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:agd:wpaper:13/013

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