Inflation Threshold Levels and Economic Growth in the Franc Zone Countries
This paper examines the growth-inflation nexus in Franc zone currency unions. It aims at estimating the inflation threshold above which additional inflationary pressures adversely affect economic expansion. It uses cointegration methods that are ap...
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World Bank, Washington, DC
2020
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Online Access: | http://documents.worldbank.org/curated/en/956741600700107596/Inflation-Threshold-Levels-and-Economic-Growth-in-the-Franc-Zone-Countries http://hdl.handle.net/10986/34503 |
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okr-10986-345032022-09-20T00:10:56Z Inflation Threshold Levels and Economic Growth in the Franc Zone Countries Sanga, Dimitri Gui-Diby, Steve Loris INFLATION ECONOMIC GROWTH FRANC ZONE WAEMU CEMAC COINTEGRATION FIXED EXCHANGE RATE REGIME CURRENCY UNION CENTRAL AFRICAN MONETARY UNION WEST AFRICAN ECONOMIC AND MONETARY UNION This paper examines the growth-inflation nexus in Franc zone currency unions. It aims at estimating the inflation threshold above which additional inflationary pressures adversely affect economic expansion. It uses cointegration methods that are applied to data from 14 African countries from the Franc zone over 1970-2018. Based on country-level data, the results indicate that it is possible to increase the threshold levels used by regional central banks to 5.4-5.6 percent in the Central African Monetary Union and 4.3-4.5 percent in the West African Monetary Union. Homogeneous cointegration panel data analyses confirm the need to increase the threshold in Central African Monetary Union countries but do not in the West African Monetary Union countries. 2020-09-24T18:44:56Z 2020-09-24T18:44:56Z 2020-09 Working Paper http://documents.worldbank.org/curated/en/956741600700107596/Inflation-Threshold-Levels-and-Economic-Growth-in-the-Franc-Zone-Countries http://hdl.handle.net/10986/34503 English Policy Research Working Paper;No. 9405 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Central Africa West Africa |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
language |
English |
topic |
INFLATION ECONOMIC GROWTH FRANC ZONE WAEMU CEMAC COINTEGRATION FIXED EXCHANGE RATE REGIME CURRENCY UNION CENTRAL AFRICAN MONETARY UNION WEST AFRICAN ECONOMIC AND MONETARY UNION |
spellingShingle |
INFLATION ECONOMIC GROWTH FRANC ZONE WAEMU CEMAC COINTEGRATION FIXED EXCHANGE RATE REGIME CURRENCY UNION CENTRAL AFRICAN MONETARY UNION WEST AFRICAN ECONOMIC AND MONETARY UNION Sanga, Dimitri Gui-Diby, Steve Loris Inflation Threshold Levels and Economic Growth in the Franc Zone Countries |
geographic_facet |
Africa Central Africa West Africa |
relation |
Policy Research Working Paper;No. 9405 |
description |
This paper examines the growth-inflation
nexus in Franc zone currency unions. It aims at estimating
the inflation threshold above which additional inflationary
pressures adversely affect economic expansion. It uses
cointegration methods that are applied to data from 14
African countries from the Franc zone over 1970-2018. Based
on country-level data, the results indicate that it is
possible to increase the threshold levels used by regional
central banks to 5.4-5.6 percent in the Central African
Monetary Union and 4.3-4.5 percent in the West African
Monetary Union. Homogeneous cointegration panel data
analyses confirm the need to increase the threshold in
Central African Monetary Union countries but do not in the
West African Monetary Union countries. |
format |
Working Paper |
author |
Sanga, Dimitri Gui-Diby, Steve Loris |
author_facet |
Sanga, Dimitri Gui-Diby, Steve Loris |
author_sort |
Sanga, Dimitri |
title |
Inflation Threshold Levels and Economic Growth in the Franc Zone Countries |
title_short |
Inflation Threshold Levels and Economic Growth in the Franc Zone Countries |
title_full |
Inflation Threshold Levels and Economic Growth in the Franc Zone Countries |
title_fullStr |
Inflation Threshold Levels and Economic Growth in the Franc Zone Countries |
title_full_unstemmed |
Inflation Threshold Levels and Economic Growth in the Franc Zone Countries |
title_sort |
inflation threshold levels and economic growth in the franc zone countries |
publisher |
World Bank, Washington, DC |
publishDate |
2020 |
url |
http://documents.worldbank.org/curated/en/956741600700107596/Inflation-Threshold-Levels-and-Economic-Growth-in-the-Franc-Zone-Countries http://hdl.handle.net/10986/34503 |
_version_ |
1764481040648241152 |