What determines monetary policy in the Franc zone?: estimating a reaction function for the BCEAO

Anja Shortland () and David Stasavage

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: This paper examines to what extent the central bank for the West African Economic and Monetary Union (BCEAO) has used interest rate policy in response to domestic economic developments. We show that while in the long run the BCEAO matches changes in French (Eurozone) interest rates one for one, in the short run it retains freedom to react to domestic economic variables, such as inflation, the output gap, its foreign exchange position and government borrowing.

JEL-codes: F3 G3 (search for similar items in EconPapers)
Date: 2004-12
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Citations: View citations in EconPapers (11)

Published in Journal of African Economies, December, 2004, 13(4), pp. 518-535. ISSN: 1464-3723

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http://eprints.lse.ac.uk/229/ Open access version. (application/pdf)

Related works:
Journal Article: What Determines Monetary Policy in the Franc Zone? Estimating a Reaction Function for the BCEAO (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:229

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