Fonction de reaction de la banque centrale et credibilite de la politique monétaire: Cas de la BEAC

Central Bank reaction fonction and monetary policy credibility: The case of BEAC

Severin Kamgna, Christian Nguenang, Hervé Talabong and Isselmou Ould

MPRA Paper from University Library of Munich, Germany

Abstract: In this paper, using monetary policy rules, we build a model which describes the fixing of the interest rate by the Bank of Central African's States (BEAC). First, with a GMM adapted for a forward looking rule, we propose a reaction function for this central bank. The result shows that from 1986 to 2006, the formulation of the monetary policy strongly depends on the past interest rate. The rule describes well the interest rate fixation process by the BEAC which tends to be guide mainly by price stability than growth objectives. Secondly, we estimate a simple rule using an error correction model. In this case, the results were better but confirm those issued by the GMM method.

Keywords: Taylor rules; Bank; Central Bank; Fonction de reaction; Banque centrale; CEMAC; BEAC; GMM; Monetary policy rules (search for similar items in EconPapers)
JEL-codes: C33 E52 E58 E61 E63 G21 G28 (search for similar items in EconPapers)
Date: 2009-07
New Economics Papers: this item is included in nep-afr and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:16557

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