Monetary Policy in Unified Currency Areas: The Cases of the Cama and Ecca During 1976-90

Author/Editor:

Jean-Claude Nascimento

Publication Date:

January 1, 1994

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

The paper compares the performance of monetary policy in the Central African Monetary Area (CAMA) and the Eastern Caribbean Currency Area (ECCA) during 1976-90. Their institutional setup and mechanism for monetary control are examined to explain the opposite trends in the net external position of their banking system during this period. It concludes that monetary policy in the ECCA succeeded by relying on active interest rate management aimed at stemming capital outflows and adhering to stringent rules aimed at limiting credit expansion. The passive policy stance in the CAMA contributed to a significant redistribution of the area’s money stock.

Series:

Working Paper No. 1994/011

Subject:

Bank credit Banking Credit Domestic credit International reserves Monetary base Monetary expansion Monetary policy Money

Notes:

Compares the performance of monetary policy in the Central African Monetary Area (CAMA) and the Eastern Caribbean Currency Area (ECCA) during 1976-90.

English

Publication Date:

January 1, 1994

ISBN/ISSN:

9781451926002/1018-5941

Stock No:

WPIEA0111994

Pages:

48

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