How would monetary policy matter in the proposed African monetary unions? Evidence from output and prices

Simplice Asongu

MPRA Paper from University Library of Munich, Germany

Abstract: We analyze the effects of monetary policy on economic activity in the proposed African monetary unions. Findings broadly show that: (1) but for financial efficiency in the EAMZ, monetary policy variables affect output neither in the short-run nor in the long-term and; (2) with the exception of financial size that impacts inflation in the EAMZ in the short-term, monetary policy variables generally have no effect on prices in the short-run. The WAMZ may not use policy instruments to offset adverse shocks to output by pursuing either an expansionary or a contractionary policy, while the EAMZ can do with the ‘financial allocation efficiency’ instrument. Policy implications are discussed.

Keywords: Monetary Policy; Banking; Inflation; Output effects; Africa (search for similar items in EconPapers)
JEL-codes: E51 E52 E58 E59 O55 (search for similar items in EconPapers)
Date: 2013-01-14
New Economics Papers: this item is included in nep-afr, nep-mac and nep-mon
References: Add references at CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/48496/1/MPRA_paper_48496.pdf original version (application/pdf)

Related works:
Journal Article: How Would Monetary Policy Matter In The Proposed African Monetary Unions? Evidence From Output And Prices (2014)
Working Paper: How would monetary policy matter in the proposed African monetary unions? Evidence from output and prices (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:48496

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().