Central Bank of Congo: Four Factors Affecting Monetary Policy Effectiveness

Christian Pinshi

MPRA Paper from University Library of Munich, Germany

Abstract: Four factors affect the effectiveness of monetary policy, three of which are exogenous, fiscal dominance, dollarization and global risks; one is endogenous, monetary policy framework that integrates strategy, tactics and governance of monetary policy. We show that the factors that undermine the effectiveness of the Central bank of Congo (BCC) are much more exogenous. However, the monetary policy framework needs to be rethought. For a lasting effectiveness of the BCC’s monetary policy, it would be necessary to put in place sustainable fiscal discipline, serious de-dollarization measures, and economic growth policies that strengthen resilience.

Keywords: Central Bank; monetary policy framework; fiscal dominance; dollarization; global risks. (search for similar items in EconPapers)
JEL-codes: E52 E58 E60 F4 (search for similar items in EconPapers)
Date: 2020-05
New Economics Papers: this item is included in nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Working Paper: Central Bank of Congo: Four Factors Affecting Monetary Policy Effectiveness (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:104841

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