Responding to Shocks and Maintaining Stability in the West African Economic and Monetary Union
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Summary:
The West African Economic and Monetary Union (WAEMU), like other monetary unions, faces a number of challenges in dealing with macroeconomic shocks. The region experiences a large number of exogenous shocks: climate-related (e.g., droughts, floods), with a heavy toll on populations and agriculture, but also economic (e.g., terms of trade), with a large impact on key sectors and the cost of living. More generally business cycle synchronization within the WAEMU seems low. Addressing these shocks, while preserving the stability of the union, is therefore a critical issue in the WAEMU.This paper discusses these issues and suggests possible reforms.
Series:
Departmental Paper No. 13/07
Subject:
Business cycles Cross country analysis External shocks Fiscal policy Fiscal stability Monetary policy West Africa West African Economic and Monetary Union
English
Publication Date:
October 22, 2013
ISBN/ISSN:
9781484341186/
Stock No:
RSMSEA
Format:
Paper
Pages:
41
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