| Description |
1 online resource (40 pages) : illustrations |
| Series |
IMF working paper ; WP/06/236 |
|
IMF working paper ; WP/06/236.
|
| Contents |
Contents -- I. INTRODUCTION -- II. BACKGROUND -- III. METHODOLOGY AND DATA -- IV. EMPIRICAL RESULTS -- V. CONCLUSION -- REFERENCES |
| Summary |
We apply the fundamentals equilibrium exchange rate (FEER) approach and the Johansen cointegration methodology to investigate the behavior of the real effective exchange rates of the two monetary unions of the CFA franc zone (CEMAC and WAEMU) vis-à-vis their long-run equilibrium paths. For both CEMAC and WAEMU, our results indicate that: (i) the fundamentals account for most of the fluctuation of the real effective exchange rates, with increases in the terms of trade, government consumption, and productivity improvements causing the exchange rate to appreciate, and increases in investment and openness leading to a depreciation; (ii) at end-2005 both the CEMAC and WAEMU real effective exchange rates were broadly in line with their long-run equilibrium values; and (iii) following a shock, reversion to equilibrium is twice as fast in WAEMU than in CEMAC |
| Bibliography |
Includes bibliographical references (pages 37-40) |
| Notes |
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 MiAaHDL |
|
Print version record |
|
digitized 2010 HathiTrust Digital Library committed to preserve pda MiAaHDL |
| Subject |
Foreign exchange rates -- French franc area
|
|
Franc, CFA.
|
|
Monetary unions -- Africa, French-speaking
|
|
Foreign exchange rates
|
|
Franc, CFA
|
|
Monetary unions
|
|
French-speaking Africa
|
| Form |
Electronic book
|
| Author |
Tsangarides, Charalambos G., author.
|
|
IMF Institute.
|
|
International Monetary Fund. African Department
|
| ISBN |
1282447912 |
|
9781282447912 |
|
9781451909494 |
|
1451909497 |
|
