A Short-run Schumpeterian Trip to Embryonic African Monetary Zones

Arbeitspapier

With the spectre of the Euro crisis looming substantially large and scaring potential monetary unions, this study is a short-run trip to embryonic African monetary zones to assess the Schumpeterian thesis for positive spillovers of financial services on growth. Causality analysis is performed with seven financial development and three growth indicators in the proposed West African Monetary Zone (WAMZ) and East African Monetary Zone (EAMZ). The journey is promising for the EAMZ and lamentable for the WAMZ. Results of the EAMZ are broadly consistent with the traditional discretionary monetary policy arrangements while those of the WAMZ are in line with the non-traditional strand of regimes in which, policy instruments in the short-run cannot be used to offset adverse shocks to output. Policy implications are discussed.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: AGDI Working Paper ; No. WP/12/001

Classification and Topics

• Classification: Wirtschaft ; Monetary Policy, Central Banking, and the Supply of Money and Credit: General ; Financial Institutions and Services: General ; Economic Development: General ; Economywide Country Studies: Africa
• Subject: Finance ; Growth ; Africa

Contributors, Location and Time

• Event: Geistige Schöpfung
• (who): Asongu, Simplice A.
• Event: Veröffentlichung
• (who): African Governance and Development Institute (AGDI)
• (where): Yaoundé
• (when): 2012

Further information

• Handle: http://hdl.handle.net/10419/123544
• Last update: 20.09.2024, 8:25 AM CEST