Fiscal Policy and Monetary Integration in the Ecowas

Onye, Kenneth U.; Umoh, Okon Joseph

doi:10.1177/00346446221094867

Cited by 2 publications

(2 citation statements)

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“…The results revealed that the union has not led to income convergence within the CFA bloc. Onye and Umoh (2023) explored the role of fiscal policy in forming a union in ECOWAS. The paper found that fiscal policy is important in the discussions of a monetary union as fiscal policy operations became countercyclical in the formation of a union post-convergence era between 2003 and 2018 compared to the pre-convergence era between 1995 and 2002.…”

Section: Empirical Issues On Monetary Integrationmentioning

confidence: 99%

Monetary Integration Across West Africa: Is the Region Ripe for a Monetary Union?

Oyadeyi

2024

Sage Open

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This study investigates the possibility of forming a monetary union across West Africa. This was achieved by employing the structural VAR framework. Data on real GDP, inflation, and exchange rate were used to represent supply, monetary, and demand shocks from the period 1986 to 2020. The impulse response and variance decomposition results showed that shocks affecting the West African region are idiosyncratic, while the residuals of the structural VAR were used to compute the correlation coefficient. The correlation coefficient revealed that the demand and monetary shocks were symmetric across WAEMU countries and asymmetric for the rest of the region. The study suggests that the West African region is not ripe for a monetary union. However, the study opined that the WAEMU countries are the closest to forming a West African monetary union and a piecemeal approach may be adopted such that the WAEMU countries are the first to form the union, while the rest may join when they meet the convergence criteria. In essence, West African countries’ central banks need to focus on harmonizing their monetary policies and remove all barriers to factor mobility for the synchronization of shocks and for all countries to meet the convergence criteria.

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Section: Empirical Issues On Monetary Integrationmentioning

confidence: 99%

Monetary Integration Across West Africa: Is the Region Ripe for a Monetary Union?

Oyadeyi

2024

Sage Open

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“…However, the possibility of uniform monetary policy has been hampered by differences in the system structure of member states, lack of macroeconomic performance convergence, and the staggering effect of the political struggle of various degrees (Onye and Umoh, 2021).…”

Section: Introductionmentioning

confidence: 99%

Monetary policy regimes and price stability in the West African monetary zone

Ajayi

Akutson

2023

JGEB

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The study examined monetary policy regimes and price stability in the West African Monetary zone. This was undertaken given that countries in the zone are implementing different monetary policy regimes to achieve price stability for macroeconomic stability and economic growth, yet these have been elusive. So, the objective of the study was to examine the effect of monetary policy regimes on price stability in the West African monetary zone. The study adopted an ex-post facto research design and obtained secondary data from documents of the Central Banks of the WAMZ countries, the World Bank Development Indicator (WDI), the International Monetary Fund (IMF), and the International Financial Statistics (IFS) database for the period from 2001 to 2021. The method of data analysis involved the use of descriptive and analytical statistical tools. The estimation technique employed was the Panel Autoregressive Distribution Lag model, complemented by the Juodis, Karavias, and Sarafidis (2021) granger-causality test. The findings of the study indicate that the various monetary policy regimes being implemented in the West African Monetary Zone yielded conflicting effects on price stability. On the whole, the results show that the monetary policy rate against the money supply is more effective to achieve price stability in the West African monetary zone. Hence, the study makes the following recommendations; policymakers must ensure that an effective monetary policy is put in place to curb the persistent inflation in the zone that undermines socioeconomic development. Countries should review monetary policy rates appropriately to stimulate output growth, and, there should be cooperation between the monetary and fiscal authorities in the West African Monetary Zone to ensure smooth coordination and consistency in monetary and fiscal pursuits.

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Fiscal Policy and Monetary Integration in the Ecowas

Cited by 2 publications

References 44 publications

Monetary Integration Across West Africa: Is the Region Ripe for a Monetary Union?

Monetary Integration Across West Africa: Is the Region Ripe for a Monetary Union?

Monetary policy regimes and price stability in the West African monetary zone

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