Record Details

Asymmetric Shocks Patterns in the Central African Economic and Monetary Community

Journal of Management of Roraima

View Archive Info
 
 
Field Value
 
Title Asymmetric Shocks Patterns in the Central African Economic and Monetary Community
 
Creator Ouyang, Hongbing
Dongfack, Laetitia P. Sokeng
 
Description Assessing the economic efficiency of countries’ participation to a currency union has become a relevant topic since the introduction of the Optimum Currency Area (OCA) theory by Mundell (1961). This paper attempts to evaluate the performance of the Central African Economic and Monetary Community (CAEMC) as a currency union in the context of exposure to asymmetric shocks. We first identify structural macroeconomic shocks within the region using the Blanchard and Quah Method. We find that aggregate demand shocks fluctuations display more symmetric patterns than those of aggregate supply shocks. Chad is the apparent outlier, as it is the only economy in the monetary union to experience negative supply shocks. This suggests that the loss of monetary sovereignty might result in significant adjustment costs.
 
Publisher SCHOLINK INC.
 
Contributor —
 
Date 2020-03-30
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://www.scholink.org/ojs/index.php/jepf/article/view/2727
10.22158/jepf.v6n2p56
 
Source Journal of Economics and Public Finance; Vol 6, No 2 (2020); p56
2377-1046
2377-1038
 
Language eng
 
Relation http://www.scholink.org/ojs/index.php/jepf/article/view/2727/2772
 
Rights Copyright (c) 2020 Hongbing Ouyang, Laetitia P. Sokeng Dongfack
http://creativecommons.org/licenses/by/4.0