Nonlinear Effects of Inflation on Growth in the WAEMU

The monetary policy conducted by the Central Bank of West African States (BCEAO) faces many challenges, including the need to fight against inflation, which is driven mainly by the volatility of commodity prices on international markets. It is also fall to common criticisms about the lack of economic growth objective in her mandate as developing countries central bank in among the poorest in the world. It therefore not immune to reflection on the existence of a dilemma "inflation-growth" it would, consciously or unconsciously involved. The aim of this paper is to demonstrate the existence of a non-linear relationship between inflation and the economic growth within the West African Economic and Monetary Union (WAEMU) and to determine the inflation threshold at which a trade-off between inflation and growth is effective. From a threshold effects dynamic panel model, the study shows that the optimal level of inflation in the WAEMU zone is 8.08%. This result raises the question of the relevance of the standard deduction of 3% under the convergence criteria of the WAEMU zone. In addition, the inclusion of such a result is likely to help the BCEAO in the definition and conduct of monetary policy.Inflation; Croissance; Politique monétaire; Effets de seuil; Panel dynamique; UEMOA.

Coordination des Politiques Economiques au Sein de la Zone UEMOA : Bilan et Perspectives

The recent economic and financial crisis in the euro area seems to question the theoretical solutions to coordinate economic policies in monetary unions. In this paper, we adress the current system of economic policy coordination within the WAEMU during 1994-2010. Using game theory and econometric techniques, we analyze the prospects of this framework. Thus, the effects of the coordination of the Central Bank and the WAEMU Commission on key macroeconomic variables are analyzed and the effects of fiscal policy coordination on intermediate goals including budget deficits and inflation. It appears that a mechanism for coordinating policies to strengthen the foundations for institutional convergence to support economic growth in the long term and that clearly specifies the set of monetary and fiscal contracts between on one side the monetary authority and fiscal authorities of the other, is a must for the optimality of the effects of monetary and fiscal policy item

Effets Non Linéaires de l'Inflation sur la Croissance dans l'UEMOA

The monetary policy conducted by the Central Bank of West African States (BCEAO) faces many challenges, including the need to fight against inflation, which is driven mainly by the volatility of commodity prices on international markets. It is also fall to common criticisms about the lack of economic growth objective in her mandate as developing countries central bank in among the poorest in the world. It therefore not immune to reflection on the existence of a dilemma "inflation-growth" it would, consciously or unconsciously involved. The aim of this paper is to demonstrate the existence of a non-linear relationship between inflation and the economic growth within the West African Economic and Monetary Union (WAEMU) and to determine the inflation threshold at which a trade-off between inflation and growth is effective. From a threshold effects dynamic panel model, the study shows that the optimal level of inflation in the WAEMU zone is 8.08%. This result raises the question of the relevance of the standard deduction of 3% under the convergence criteria of the WAEMU zone. In addition, the inclusion of such a result is likely to help the BCEAO in the definition and conduct of monetary policy

Partage d’une monnaie commune : convergence et croissance en Afrique de l’Ouest ?

Huit États de l’Ouest africain se sont lancés depuis plusieurs décennies dans un processus d’intégration économique et monétaire. Succès et échecs de ce processus sont ici analysés, notamment à l’aune des théories de la convergence liée au partage d’une monnaie commune. Très vite des choix apparaissent : soit limiter l’ambition à une instance de coordination, soit pousser en avant vers un système fédéraliste. En l’absence prolongée de l’une ou de l’autre orientation, l’instabilité se met en place.Nubukpo Kako. Partage d’une monnaie commune : convergence et croissance en Afrique de l’Ouest ?. In: Recherches Internationales, n°99, 2014. L’économie mafieuse et criminelle internationale. pp. 25-35

Monetary reform as a response to the challenge of endogenous development in sub-Saharan Africa

This collective book is the result of research networking between authors from three continents (Africa, Asia and Europe) working on new approaches to development policies and strategies. It addresses recent hot topics on development strategies: the role of gender and women on economic development, new approaches to the link between human capital and economic growth, leapfrogging strategies for industrialization, new trade openness strategies in a context of globalization, micro and macro aspects of sustainable development, and budgetary, monetary and financial strategie