The Common Monetary Area in Southern Africa: Shocks, Adjustment, and Policy Challenges

IMF Working Papers, July 1, 2007

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Canonical URL: The Common Monetary Area in Southern Africa: Shocks, Adjustment, and Policy Challenges

This study assesses the experience of the Common Monetary Area (CMA) based on available empirical evidence over the last two decades.
Pays particular attention to member countries' adjustment to economic shocks in recent years and the inter-country linkages, including the spillover effects of policies.
Draws the main lessons from the CMA experience, identifies key policy challenges, and discusses the issues facing the member countries in their efforts to achieve sustained growth.
Notes implications for further economic integration in a broader regional context.

Empirical assessment of CMA experience over the last two decades.
Member countries' adjustment mechanisms to economic shocks.
Inter-country linkages within the CMA and spillover effects of national policies.
Identification of main lessons from the CMA experience relevant for sustained growth and regional integration.

Identifies key policy challenges facing CMA member countries in achieving sustained growth.
Discusses policy implications for deeper economic integration in a broader regional context.
Emphasizes consideration of spillover effects when designing national policies within a monetary union arrangement.

Authors: Iyabo Masha, Leighton S Harris, Jian-Ye Wang, Kazuko Shirono
Publication date: July 1, 2007
Series: Working Paper No. 2007/158
Issue: 158
Volume: 2007
Pages: 63
DOI: https://doi.org/10.5089/9781451867220.001
ISBN: 9781451867220
ISSN: 1018-5941
Subject: Banking, Currencies, Exchange rate arrangements, International reserves, Monetary unions
Keywords: central bank, CMA agreement, CMA country, interest rate, monetary union, real GDP, WP

IMF Working Paper No. 2007/158