Macroeconomic Fluctuations in Sub-Saharan Africa
July 1, 1997
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Summary
The sources of macroeconomic fluctuations in sub–Saharan African are examined by comparing the CFA franc countries with the non–CFA franc countries. External shocks, especially terms of trade shocks, appear to have a greater influence on fluctuations of output and the real exchange rate in CFA franc countries. This result does not appear to be associated with differences in the economic structure but may reflect the fixed exchange rate regime, which does not (partially) buffer these countries from external shocks. Macroeconomic fluctuations in non–CFA franc countries are similar to those in other developing countries, particularly in Latin America.
Subject: Exchange rate arrangements, Foreign exchange, Inflation, International trade, Prices, Real exchange rates, Terms of trade, Trade balance
Keywords: CFA franc, CFA franc country, exchange arrangements, Exchange rate arrangements, Inflation, Macroeconomic fluctuations, Non-CFA Franc country, open economy, Real exchange rates, Sub-Saharan Africa, sub-Saharan Africa country, Terms of trade, terms of trade shock, Trade balance, WP
Pages:
30
Volume:
1997
DOI:
Issue:
082
Series:
Working Paper No. 1997/082
Stock No:
WPIEA0821997
ISBN:
9781451954746
ISSN:
1018-5941
Notes
Also published in Staff Papers, Vol. 45, No. 1, March 1998.
