Monetary, Financial and Fiscal Stability in the East African Community: Ready for a Monetary Union?

Autor: Clovis Rugemintwari, Laetitia Lepetit, Frank Strobel
Přispěvatelé: Laboratoire d'Analyse et de Prospective Economique (LAPE), Gouvernance des Institutions et des Organisations (GIO), Université de Limoges (UNILIM)-Université de Limoges (UNILIM), University of Birmingham [Birmingham]
Rok vydání: 2014
Předmět:
Finance
Economics and Econometrics
Stylized fact
050208 finance
Financial stability
business.industry
JEL: E - Macroeconomics and Monetary Economics/E.E5 - Monetary Policy
Central Banking
and the Supply of Money and Credit/E.E5.E58 - Central Banks and Their Policies
05 social sciences
1. No poverty
Stability (learning theory)
[SHS.ECO]Humanities and Social Sciences/Economics and Finance
Fiscal union
Monetary hegemony
East African Community
JEL: F - International Economics/F.F3 - International Finance/F.F3.F33 - International Monetary Arrangements and Institutions
Accounting
0502 economics and business
Political Science and International Relations
Economics
JEL: O - Economic Development
Innovation
Technological Change
and Growth/O.O5 - Economywide Country Studies/O.O5.O55 - Africa
050207 economics
business
Zdroj: The World Economy
The World Economy, blackwell publishing, 2015, 38 (8), pp.1179-1204
ISSN: 0378-5920
DOI: 10.1111/twec.12243
Popis: We examine prospects for a monetary union in the East African Community (EAC) by developing a stylized model of policymakers' decision problem that allows for uncertain benefits derived from monetary, financial and fiscal stability, and then calibrating the model for the EAC for the period 2003-2010. When policymakers properly allow for uncertainty, none of the countries wants to pursue a monetary union based on either monetary or financial stability grounds, and only Rwanda might favor it on fiscal stability grounds; we argue that robust institutional arrangements assuring substantial improvements in monetary, financial and fiscal stability are needed to compensate.
Databáze: OpenAIRE
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