Financial development and monetary policy effectiveness in Africa
| Autor: | Ekpeno L. Effiong, Chuku Chuku, Godwin Essang Esu |
|---|---|
| Rok vydání: | 2020 |
| Předmět: |
Inflation
050208 finance Financial sector development Inflation targeting media_common.quotation_subject 05 social sciences Monetary policy Monetary economics International economics Monetary hegemony Credit channel Negative relationship 0502 economics and business Economics 050207 economics media_common Panel data |
| Zdroj: | Journal of Social and Economic Development. 22:160-181 |
| ISSN: | 2199-6873 0972-5792 |
| DOI: | 10.1007/s40847-020-00098-x |
| Popis: | As African countries await the birth of her monetary union, the link between economic policies and the real economy will continue to dominate policy debate. This paper investigates whether financial development influences the effectiveness of monetary policy on output and inflation in Africa. We apply standard panel data techniques to annual data from 1990--2015 for a panel of 39 African countries, and find a weak relationship between financial development and monetary policy effectiveness in Africa. The results show no statistical evidence of the relationship for output growth, whereas a negative relationship exist in the case of inflation, but only at their contemporaneous levels. Thus, there is need to strengthen the monetary transmission mechanism in African countries through deliberate efforts to deepen financial sector development. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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