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Eco 2020: Monetary Policy for the Future Central Bank and Economic Development in West Africa

Received: 8 April 2020     Accepted: 28 April 2020     Published: 26 February 2021
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Abstract

In a context where international political and diplomatic weight also weighs in the game of international monetary cooperation, regional monetary policy can offer to West African countries an opportunity to strengthen their individual and collective position in terms of development, within international cooperation. This vision, based not on the contribution to the resolution of internal monetary problems, but envisaged as an instrument to stem monetary shocks coming from the outside, has not been sufficiently recognized and analyzed, both in the theoretical literature and in considerations of policy makers. Better consideration of this dimension could help steer the debate on monetary integration in the right direction: that of rapid progress towards the single currency. The general objective of this paper is to propose to the political powers, a common monetary policy, able to inject the new dynamism into the economic development of ECOWAS (Economic Community of West African States) countries. This general objective is divided into two specific objectives: analyze the theoretical, economic and political challenges of ECOWAS monetary policy; and to propose a monetary policy adapted to the economic contexts of the ECOWAS countries, and able to inject the new dynamism into the economic development. To achieve these objectives, we carried out a documentary review of the monetary policies currently underway in the countries of West Africa. Next, we relied on the Autoregressive Vector Model with Panel Interactions (IPVAR), following the methodology proposed by Towbin, Pascal & Weber, Sebastian. An effective monetary policy of the future ECOWAS central bank can boost the development of West African countries.

Published in International Journal of Business and Economics Research (Volume 10, Issue 1)
DOI 10.11648/j.ijber.20211001.17
Page(s) 50-57
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2021. Published by Science Publishing Group

Keywords

Monetary Policy, Economic Development, Central Bank, ECOWAS

References
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[3] Scitovsky, 1958, Economic Theory and Western European Integration, Revue économique Année 1959 10-3 pp. 472-474.
[4] Mundell, R. A. (1961) «A Theory of Optimum Currency Areas», American Economic Review reproduit in Blejer.
[5] Rose, 2000, One money, one market: the effect of common currencies on trade. Economic Policy, Volume 15, Issue 30, 1 April 2000, Pages 08–45.
[6] Bean, C. R. (1992), ‘Economic and Monetary Union in Europe’, Journal of Economic Perspectives, Vol. 6, pp. 31–52.
[7] Tavlas, G. S. (1994), «The Theory of Monetary Integration», Open Economies Review, vol. 5 n°2, 99, pp. 211–230.
[8] McKinnon, R. I. (1963), «Optimum Currency Areas», American Economic Review, vol. 52 pp. 717–725.
[9] Mishkin, Frederic S., 1996. The Channels of Monetary Transmission: Lessons for Monetary Policy (February 1996). NBER Working Paper No. w5464. Available at SSRN: https://ssrn.com/abstract=265157.
[10] Arnaud Parienty, 2016. Comment fonctionne la politique monétaire. Dans Alternatives Économiques 2016/2 (N° 354), page 76.
[11] Misra, Kanishka, and Paolo Surico. 2014. "Consumption, Income Changes, and Heterogeneity: Evidence from Two Fiscal Stimulus Programs." American Economic Journal: Macroeconomics, 6 (4): 84-106.
[12] Barigozzi, Matteo and Hallin, Mark, 2015. Generalized dynamic factor models and volatilities: recovering the market volatility shocks. The Econometrics Journal. ISSN 1368-4221.
[13] Ehrmann, M., L. Gambacorta, J. Martinez Pagés, P. Sevestre and A. Worms (2003). ‘Financial systems and the role of banks in monetary policy’, in Angeloni I., A. K. Kashyap and B. Mojon (eds.), Monetary Policy Transmission in the Euro Area, Cambridge University Press, Cambridge.
[14] Towbin, Pascal & Weber, Sebastian, 2013. "Limits of floating exchange rates: The role of foreign currency debt and import structure," Journal of Development Economics, Elsevier, vol. 101 (C), pages 179-194.
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[16] Christian Saborowski; Sebastian Weber, 2013, Assessing the Determinants of Interest Rate Transmission Through Conditional Impulse Response Functions, Working Paper No. 13/23, IMF, ISBN/ISSN: 9781475525717/1018-5941.
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  • APA Style

    N’djibio Kokou Charlemagne, Sylla Doucouré Karima. (2021). Eco 2020: Monetary Policy for the Future Central Bank and Economic Development in West Africa. International Journal of Business and Economics Research, 10(1), 50-57. https://doi.org/10.11648/j.ijber.20211001.17

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    ACS Style

    N’djibio Kokou Charlemagne; Sylla Doucouré Karima. Eco 2020: Monetary Policy for the Future Central Bank and Economic Development in West Africa. Int. J. Bus. Econ. Res. 2021, 10(1), 50-57. doi: 10.11648/j.ijber.20211001.17

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    AMA Style

    N’djibio Kokou Charlemagne, Sylla Doucouré Karima. Eco 2020: Monetary Policy for the Future Central Bank and Economic Development in West Africa. Int J Bus Econ Res. 2021;10(1):50-57. doi: 10.11648/j.ijber.20211001.17

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  • @article{10.11648/j.ijber.20211001.17,
      author = {N’djibio Kokou Charlemagne and Sylla Doucouré Karima},
      title = {Eco 2020: Monetary Policy for the Future Central Bank and Economic Development in West Africa},
      journal = {International Journal of Business and Economics Research},
      volume = {10},
      number = {1},
      pages = {50-57},
      doi = {10.11648/j.ijber.20211001.17},
      url = {https://doi.org/10.11648/j.ijber.20211001.17},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20211001.17},
      abstract = {In a context where international political and diplomatic weight also weighs in the game of international monetary cooperation, regional monetary policy can offer to West African countries an opportunity to strengthen their individual and collective position in terms of development, within international cooperation. This vision, based not on the contribution to the resolution of internal monetary problems, but envisaged as an instrument to stem monetary shocks coming from the outside, has not been sufficiently recognized and analyzed, both in the theoretical literature and in considerations of policy makers. Better consideration of this dimension could help steer the debate on monetary integration in the right direction: that of rapid progress towards the single currency. The general objective of this paper is to propose to the political powers, a common monetary policy, able to inject the new dynamism into the economic development of ECOWAS (Economic Community of West African States) countries. This general objective is divided into two specific objectives: analyze the theoretical, economic and political challenges of ECOWAS monetary policy; and to propose a monetary policy adapted to the economic contexts of the ECOWAS countries, and able to inject the new dynamism into the economic development. To achieve these objectives, we carried out a documentary review of the monetary policies currently underway in the countries of West Africa. Next, we relied on the Autoregressive Vector Model with Panel Interactions (IPVAR), following the methodology proposed by Towbin, Pascal & Weber, Sebastian. An effective monetary policy of the future ECOWAS central bank can boost the development of West African countries.},
     year = {2021}
    }
    

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    AB  - In a context where international political and diplomatic weight also weighs in the game of international monetary cooperation, regional monetary policy can offer to West African countries an opportunity to strengthen their individual and collective position in terms of development, within international cooperation. This vision, based not on the contribution to the resolution of internal monetary problems, but envisaged as an instrument to stem monetary shocks coming from the outside, has not been sufficiently recognized and analyzed, both in the theoretical literature and in considerations of policy makers. Better consideration of this dimension could help steer the debate on monetary integration in the right direction: that of rapid progress towards the single currency. The general objective of this paper is to propose to the political powers, a common monetary policy, able to inject the new dynamism into the economic development of ECOWAS (Economic Community of West African States) countries. This general objective is divided into two specific objectives: analyze the theoretical, economic and political challenges of ECOWAS monetary policy; and to propose a monetary policy adapted to the economic contexts of the ECOWAS countries, and able to inject the new dynamism into the economic development. To achieve these objectives, we carried out a documentary review of the monetary policies currently underway in the countries of West Africa. Next, we relied on the Autoregressive Vector Model with Panel Interactions (IPVAR), following the methodology proposed by Towbin, Pascal & Weber, Sebastian. An effective monetary policy of the future ECOWAS central bank can boost the development of West African countries.
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Author Information
  • Finance, Entrepreneurship and Accounting Laboratory (LaFEC) of Doctoral School of Economic Sciences and Management, Faculty of Economic Sciences and Management (FASEG), University of Abomey Calavi (UAC), Cotonou, Benin

  • Finance, Entrepreneurship and Accounting Laboratory (LaFEC) of Doctoral School of Economic Sciences and Management, Faculty of Economic Sciences and Management (FASEG), University of Abomey Calavi (UAC), Cotonou, Benin

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