Macroeconomic Policy in the Franc Zone: (Studies in Development Economics and Policy)

The fourteen members of the African CFA Franc Zone represent the largest monetary unions in the southern hemisphere, predating the European Monetary Union by decades. This book analyzes the recent economic experiences of the Franc Zone's member states and of its economic institutions. It pays particular attention to the way this disparate group of countries exploit the advantages and manage the costs of adhering to a single currency. It also analyzes the impact Franc Zone institutions have on poverty.

Table of Contents:
Introduction; D.Fielding PART 1: CONVERGENCE IN THE FRANC ZONE AND OPTIMUM CURRENCY AREA THEORY Analysis of the Convergence Process in the UEMOA Zone; L.N.Bamba The Characteristics of Macroeconomic Shocks in the Franc Zone; D.Fielding, K.Lee & K.Shields Variance Decomposition of Macroeconomic Shocks in the Franc Zone and other Sub-Saharan African Countries; S.Coleman PART 2: ANALYSIS OF MONETARY POLICY Monetary Policy in the Franc Zone: Country-level Credit Policy; A.Shortland & D.Stasavage Estimating an Interest Rate Reaction Function for the BCEAO; A.Shortland & D.Stasavage PART 3: THE FRANC ZONE AND POVERTY Poverty and Growth in the WAEMU after the 1994 Devaluation; J-P.Azan Economic Growth, Income Distribution and Poverty: Time Series and Cross-country Evidence from the Franc Zone Countries of Sub-Saharan Africa; M.Bleaney & A.Nishiyama How Does Monetary Policy Affect the Poor? Evidence from the West African Economic and Monetary Union; D.Fielding

About the Author :
DAVID FIELDING is Professor of Economics at the University of Otago, New Zealand. His research interests are in development macroeconomics and quantitative political economy. He has previously held positions at the Universities of Oxford, Nottingham and Leicester.

Review :
'This volume featuring contributions by some of the leading scholars in development macroeconomics provides theoretically informed, empirically grounded and factual evidence on macroeconomic developments in the CFA Franc Zone in West and Central Africa. The combination of historical developments and methodological depth renders it the ideal, unique and comprehensive guide for all those interested in monetary union in Africa. Moreover, it extends the frontier of knowledge on the impact of monetary union on poverty, a seemingly evolving area in the literature.' - Dr Afeikhena Jerome, Department of Economics, University of Ibadan, Nigeria 'This book not only examines macroeconomic shocks and (monetary) policies in the context of the Franc Zone countries and their neighbours, but also draws policy implications for growth and poverty reduction from the studies in an analytical rigorous manner. The book is an invaluable resource for policymakers and researchers in West and Central Africa as well as those engaged in other regional economic groupings in the rest of Africa, where issues of convergence and monetary union would be a central policy question.' - Alemayehu Geda, Associate Professor, Head, Department of Economics, Addis Ababa University, Ethiopa and African Economic Research Consortium 'The findings of the book are a good start for a critical examination of the theoretical and empirical underpinnings of monetary policies in the Franc Zone and areas oftheir complementarities with fiscal policies. The rigorous scrutiny of UEMOA's and BCEAO's policymaking is a healthy endeavour that should concern more local academicians and professional economists.' - Jacques Pégatiénan Hiey, Consultant, PH International and Direction Générale de l'Economie, Ministère d'Etat, Ministère de l'Economie et des Finances 'What may appear as purely macroeconomic analysis actually goes on to show the impact of monetary policy in the West and Central Africa Franc zone on rich and poor households. This book proposes measures to cushion the poorest of the poor - who bear the brunt of the monetary adjustments reviewed here.' - Mamadou Kani Konaté, Centre for Research and Training Support (CAREF), Mali 'This book is essential reading for researchers of issues related to African monetary union. As well as addressing key issues associated with the functioning and well-being of the CFA Franc Zone, the various econometric methodologies employed throughout are carefully explained and the findings clearly drawn out.' - Mark J. Holmes, The World Economy