The CFA Arrangements: More than Just An Aid Substitute?
IMF Working Papers, January 1, 2007
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- The CFA Arrangements: More than Just An Aid Substitute?
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Bibliographic details
- Authors: Etienne B Yehoue
- Published: January 1, 2007
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451865837.001
Summary
- Research question: whether the CFA franc arrangements are more than just an aid substitute given France’s role as anchor country and provider of aid.
- Coverage period: 1960-2004.
- Publication: IMF Working Paper by Etienne B Yehoue, January 1, 2007.
- Scope: evaluation of overall performance of the CFA franc zone with respect to shock absorption, price stability, and fiscal policy.
Key findings
- Shock absorption
- When the zone is hit by a negative shock, France increases its aid, thereby acting as a shock absorber.
- Macroeconomic performance
- The zone displays strong performance in two areas: price stability and fiscal policy.
- Overall conclusion
- The arrangements are not an aid substitute; they have real macroeconomic value for the zone and complement aid.
Subjects and keywords (as listed)
- Subjects: Economic integration, Exchange rate arrangements, Exports, Foreign exchange, Government asset and liability management, Inflation, International trade, Monetary unions, Prices, Public financial management (PFM)
- Keywords: absorption role, Aid, anchor country, anchor currency inflation rate, CEMAC member country, Central Africa, CFA franc, CFA member country, CFA zone member country, country, Currency Unions, Exchange rate arrangements, Exports, France, France's export, Government asset and liability management, Inflation, inflation country, inflation rate variability, International Risk Sharing, Monetary unions, single currency, Trade, West Africa, WP, zone anchor country, zone countries' inflation rate variability, zone country
Source: The CFA Arrangements: More than Just An Aid Substitute?, IMF Working Papers, Etienne B Yehoue, January 1, 2007.