Monetary Policy in the Franc Zone: Estimating Interest Rate Rules for the BCEAO

Anja Shortland () and David Stasavage

No RP2004-20, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

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.

Keywords: Central banking; Econometric models; Inflation; Monetary policy; Prices (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:unu:wpaper:rp2004-20

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