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Macroeconomic Shocks and Trade Flows within Sub-Saharan Africa: Implications for Optimum Currency Arrangements
Author:
Mr. Tamim Bayoumi
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Mr. Jonathan David Ostry
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Series:
IMF Working Papers
Volume/Issue:
Volume 1995: Issue 142
Language:
English
Publication Date:
01 Dec 1995
DOI:
https://doi.org/10.5089/9781451927498.001
ISBN:
9781451927498
ISSN:
1018-5941
Pages:
34
Keywords:
WP; trade share; CFA franc zone; group trade; share rise; exchange rate arrangement; Optimum Currency Areas; Sub-Saharan Africa; inflation correlation; ECOWAS country; ECOWAS trade share; Monetary unions; Exchange rate arrangements; Inflation; Currencies; Conventional peg; Africa; West Africa; East Asia
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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Africa has more countries than any other continent, and hence the largest number of potential monetary and exchange rate arrangements. This paper looks at whether the existing highly fractured monetary arrangements in Sub-Saharan Africa correspond to what might be expected from the theory of optimum currency areas. This is done by analyzing both the size and correlation of real disturbances across countries and the level of intra-regional trade. The results indicate little evidence that Sub-Saharan African countries would benefit in the near future from larger currency unions.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund