Alternatives to Expedite Macroeconomic Convergence of the SADC Countries

Rossouw, Jannie; Fourie, Johan

doi:10.1007/s11294-008-9183-6

Cited by 1 publication

(1 citation statement)

References 4 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…They concluded that a monetary union for SADC is not feasible given the differences in monetary and fiscal policies among its members. Rossouw (2006), Rossouw and Fourie (2008), and Burgess (2009) suggested that SADC has met some of its 2008 macroeconomic convergence goals. McCharty (2007) blamed external shocks and economic structural differences for the long period of economic divergence that SADC has experienced.…”

Section: Introductionmentioning

confidence: 99%

Regime-Dependent Monetary Policy Convergence: The Case of Southern African Development Community (SADC)

Anoruo¹,

Ahmad²

2013

jda

View full text Add to dashboard Cite

This paper examines the issue of monetary policy convergence for members of the Southern African Development Community (SADC) using the Markov Switching unit root procedure. The results from the conventional unit root tests including the Dickey-Fuller and the modified DickeyFuller reveal that the exchange rate and inflation series are first difference stationary. The likelihood ratio tests suggest that the results from the Markov Switching ADF model should be preferred over those from the standard unit root testing procedures. In most of the cases, the results from the Markov switching ADF procedures indicate that the nominal exchange rate series are characterized by two stationary regimes. This finding provides evidence of monetary convergence among the SADC member countries. The existence of monetary convergence suggests that SADC member countries are likely to satisfy their macroeconomic convergence targets and hence attain some form of Maastricht-type criteria.JEL Classifications: C22, C26, F31

show abstract

Section: Introductionmentioning

confidence: 99%