Responding to Shocks and Maintaining Stability in the West African Economic and Monetary Union

Author/Editor: Christina Kolerus ; Aleksandra Zdzienicka ; Ermal Hitaj ; Douglas J Shapiro
Publication Date: October 22, 2013
Electronic Access: Free Full text (PDF file size is 1,636KB).
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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: African Departmental Paper No. 13/7
Subject(s): External shocks | West African Economic and Monetary Union | Monetary policy | Business cycles | Fiscal policy | Fiscal stability | Cross country analysis | West Africa

Publication Date: October 22, 2013
ISBN/ISSN: 9781484341186 Format: Paper
Stock No: RSMSEA Pages: 41
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