Responding to Shocks and Maintaining Stability in the West African Economic and Monetary Union
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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:
Departmental Paper No. 2013/007
Subject:
Business cycles Debt sustainability Debt sustainability analysis Economic growth Economic integration External debt Monetary unions Public debt
English
Publication Date:
October 22, 2013
ISBN/ISSN:
9781484341186/2616-5333
Stock No:
RSMSEA
Pages:
41
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