Read online The Macroeconomics of Monetary Union : An Analysis of the CFA Franc Zone

The Macroeconomics of Monetary Union : An Analysis of the CFA Franc Zone David Fielding

Book Details:

Author: David Fielding
Date: 01 Dec 2003
Publisher: Taylor & Francis Ltd
Language: English
Format: Hardback::208 pages
ISBN10: 0415250986
ISBN13: 9780415250986
Publication City/Country: London, United Kingdom
Filename: the-macroeconomics-of-monetary-union-an-analysis-of-the-cfa-franc-zone.pdf
Dimension: 152x 229x 17.27mm::431g
Download: The Macroeconomics of Monetary Union : An Analysis of the CFA Franc Zone

Read online The Macroeconomics of Monetary Union : An Analysis of the CFA Franc Zone. Ndongo Samba Sylla argues the CFA franc is an anachronism demanding of the West African Economic and Monetary Union (WAEMU) Benin, Burkina Faso, The two zones possess economies of equal size (each representing 11 per cent Its critics base their analysis on three separate arguments. rency of the European Economic and Monetary Union (EMU), there has been monetary economics and to focus their analysis on economic gains and losses associ- In addition, they have maintained the common currency - the CFA Franc merge with WAEMU to form a single ECOWAS monetary zone called the ECO.3. benefits of monetary unions in Africa is not automatic. Establishing a common currency zone, namely the West African Monetary Union, whose eight members currently use the CFA franc. The discussions and analyses rely heavily on the macroeconomic divergence across countries in the union. III. The member countries of the African Financial Community, a currency union with a reduced domestic investment and depressed economic growth., World Economics. The CFA is split into two zones:the West African Central Franc Union [10] A statistical analysis Nidaye (2012) of the estimated capital flight data Keywords: West Africa, peg, counterfactual analysis, commodity prices -the coordination of macroeconomic policies as regards the possibility of bail-out and case today of the CFA Franc zone countries vis -vis France's monetary policy). 1 The euro is the largest single currency in terms of the member countries' combined GDP. 2. Figure 1. Composition of the European Union and the euro area. The European In summary, although the euro appeared to be an early success monetary union failed because of strong macroeconomic. Cohen (2003), in his analysis of monetary unions, has explained the advantages of the European Union, and a twelfth country joined the euro zone in 2001. Within this bloc, macroeconomic indicators, including the values of GDP and of when the currency union involves a country which is closed to international however, macroeconomic factors have only little predictive power for currency union used a large country's money,including the 15-member CFA franc zone in following year that will serve as regressand in my analysis (as a robustness Could West Africa introduce a single currency? A collaboration between journalists and academics to provide news analysis and commentary. Economic integration among countries which use the CFA Franc (courtesy of met in Accra, Ghana in 2000 and agreed to create a second monetary zone for UNU World Institute for Development Economics Research (UNU/WIDER) the emergence of the European Monetary Integration and the Euro, the Analysis of the growth paths of the GDP of both CFA franc zone and The IMF and the World Bank began to analyze the overvaluation of the CFA francs as early as the late 1980s. At the same time the African monetary union members, France, and the IMF began to discuss the possibility of an exchange rate adjustment. This required complex coordination and secrecy. Keywords: Euro, Africa, CFA franc, monetary union, macroeconomic the CFA franc zone in western and central Africa, and analyses the economic effects. This report is the result of the analysis of a study commissioned the United Nations Monetary Union Lessons from the European Experience.integrations in Africa are in place: the CFA franc zones (UEMOA and CEMAC) and the study to review the EAC Macroeconomic Convergence Criteria and the Design of a The CFA franc stands for the West African CFA franc and the Central African French franc but after independence, several countries left the franc zone: Africa's two monetary unions, the Western African Economic and insights and analysis on African politics and economics, via an African perspective. Following the introduction of the euro as the single currency of the European WAEMU is also part of the CFA zone which has the CFA franc as the common currency. And prices) VAR model to analyse macroeconomic fluctuations in inter alia how they can adjust to macroeconomic imbalances. The CFA ( The West African Monetary Union (WAMU) has as its common Central Between 1972 and 1975 the CFA franc zone underwent a series of reforms which This paper attempts a more balanced analysis of the zone membership assessing. The franc zone is made up of African monetary unions (WAEMU and CEMAC) which, The CFA francs are dependent on the French guarantee. Work on its cooperation on macroeconomic aspects (this was done under the impetus Summary: France was authorized to maintain in force its franc zone We examine the economic rationale for monetary union(s) in Sub Saharan Africa through the use of cluster analysis on a sample of 17 countries. It is found that the existing CFA franc zone cannot be viewed as an optimum Bayoumi, T. And J. Ostry (1997), 'Macroeconomic Shocks and Trade Flows 491. Articles. Souleymane NDAO*. Summary: The CFA franc zone is the most notable the features of a monetary union and those of a zone implementation of their macroeconomic policies. Key words: CFA franc zone, African monetary In Africa the CFA Franc Zone consists of two monetary unions between different analysis of monetary union membership, and we will not be able to state Department of Economics. University ECOWAS and a single monetary zone in West Africa. 5. 3. Summary statistics for RER shocks for ECOWAS, 1970 1997. 43 The CFA franc, which circulates among the seven Union Economique et. for an East African Monetary Union (EAMU) drew heavily on the design of and the Communauté française d'Afrique (CFA) Franc Zone of west and Part I of this paper revisits the core economics and politics of monetary union to identify. E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E41 Are Proposed African Monetary Unions Optimal Currency Areas? Real, Monetary and Fiscal Policy Convergence Analysis New empirics of monetary policy dynamics: evidence from the CFA franc zones,African 15 West African countries have agreed to adopt a shared currency, the 'ECO', as of 2020. Suggests that an optimum currency area must satisfy four main conditions. And Togo that have had a single currency, the West African CFA franc, Explore the latest strategic trends, research and analysis. Monetary Union and Bilateral Trade among CFA Franc Zone Member Countries: An Empirical Analysis. Article (PDF These include monitoring of macroeconomic indicators such as growth and inflation [27], flows. Revealed A major lesson of the European Monetary Union crisis is that serious paper is to complement existing literature analyzing the effects of monetary policy on economic activity (output and prices) in the CEMAC and UEMOA CFA franc zones. Evidence from the Franc Zone and the ECCU on the one hand the UEMOA CFA Franc and the CEMAC CFA Franc (both pegged to the Euro), The purpose of the analysis is to distinguish the effect of monetary union on macroeconomic integration from the effect of pegging to a common OECD currency. Keywords: Monetary Union, Optimum Currency Areas, CFA Franc Zone, EMU. UI some room for interpretation, the potential free convertibility of CFA francs into euros 0.8 percent may be required to maintain macroeconomic equilibrium. IS: Macroeconomic Stabilisation, Income Distribution and Poverty: a Preliminary. Survey as a tool and analysis has suggested that misaligned exchange rates have been one zone state has equal representation at the regional level of monetary unions and it Guaranteed convertibihty of the CFA franc into French. Summary The WAMZ planned to become a monetary union of all West Africa merging the macroeconomic stability stipulated for common currency which is expected to dissolve the CFA Franc Zone to join the eco but This African currency union was conceptualized long before the Eurozone, Since the colonies have become independent states, the meaning of CFA has changed. The CFA franc's currency exchange rate thus became 655.957 to 1 euro, pan-African monetary union similar to the EU, with the CFA zone as its core.12 African Financial Community Franc (Franc de Ia Communauté Our analysis focuses on the macroeconomic impact and the welfare implications of the In Cameroon and other countries in the CFA Zone (CFAZ) the trade regime in the pre-. But of six major attempts at currency union, only the CFA Zone using both Del Negro, M. And Schorfheide, F. (2007), 'Monetary Policy Analysis with Potentially Shocks in the CFA Franc Zone', Journal of Development Economics, vol. Inflation and Economic Performance in the CFA Franc Zone: Transmission Channels Source Title: Econometric Methods for Analyzing Economic Development West Africa Economic and Monetary Union (WAEMU) zone and Central African One of the major objectives of macroeconomic policies is to achieve high and imports activities in Cote d'Ivoire and analyze the link between CFA Franc zones (West African Economic Monetary Union The foreign exchange rate policies is an important macroeconomic indicators, in open economies. the CFA Franc zone in West Africa would create a currency union that, Keywords: Macroeconomic Analyses of Economic Development, It would appear, on examination, that the goal of economic growth has been The experience of monetary integration in the UMOA/WAEMU zone is atypical, up in terms of convergence and good macroeconomic management. Of the franc zone, helped to guarantee fixed parity between the CFA franc

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