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...
This paper examines whether the BCEAO has made use of the various policy instruments at its disposal for steering credit in the individual CFA zone member countries to complement interest rate policy at the zone level. We estimate whether private...
The paper determines an analytical framework defining the choice of an optimal exchange rate regime for a typical CFA country. The policymakers behave strategically to decide to adopt alternative exchange rate regime by minimizing their loss function...
The 14-member Franc Zone in West and Central Africa represents the largest monetary union in the southern hemisphere, predating the European Monetary Union by decades. With monetary unions planned for other parts of Africa in the near future...
It is argued that the theoretical literature on dual exchange markets has completely neglected the form of central bank intervention emphasized by the "classics". They advocated neutral intervention where the central bank sells in the capital market...
Using China as a test case, this paper empirically investigates how the development of financial intermediation affects rural-urban income disparity (RUID). Using 20-year province level panel data, we find that the level of financial development is...
In the last two decades, there has been a global sea change in the theory and practice of central banking. The currently dominant ‘best practice’ approach to central banking consists of the following: (1) central bank independence (2) a focus on...
This paper examines how macroeconomic policies can be managed to accommodate a large inflow of foreign aid to combat the HIV/AIDS epidemic and still maintain macroeconomic stability. Because of the daunting scale of this epidemic, funds need to be...
by Tony Addison The last ten years or so have seen 56 major armed conflicts in 44 different locations, most of them civil wars. Different types of...
The bulk of recent literature on foreign exchange interventions has overlooked the potential interdependencies that may exist between these operations and the conduct of monetary policy. This is the case even under inflation targeting and especially...
This paper discusses some of the principal issues relating to the reconstruction of the financial sector in conflict-affected countries, focusing on currency reform, the rebuilding (or creation) of central banks, the revitalization of the banking...
Part of Book Macroeconomic Policy in the Franc Zone
Part of Journal Special Issue The CFA Franc Zone 10 Years After Devaluation
Les 14 pays membres de la zone franc en Afrique de l'Ouest et en Afrique centrale constituent - avec plusieurs décennies d'avance sur l'Union monétaire européenne - la plus importante union monétaire de l'hémisphère austral. Face à la perspective de...
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