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:

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Disclaimer: The views expressed herein are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

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. 2013/007

Subject:

English

Publication Date:

October 22, 2013

ISBN/ISSN:

9781484341186/2616-5333

Stock No:

RSMSEA

Pages:

41

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