Exchange rate regimes and economic performance: Does CFA zone membership benefit their economies?

Issiaka Coulibaly () and Junior Davis

MPRA Paper from University Library of Munich, Germany

Abstract: This paper aims to evaluate the importance and impact of CFA zone membership by distinguishing between the effects of being in monetary union from those which arose from anchoring the CFA franc. Using de jure and de facto regime classification schemes and a sample of 35 SSA countries over the 1985-2009 period, our results show that the CFA zone membership has been beneficial in terms of inflation, while it has not resulted in a significant effect on growth. Finally, we evidence that greater fiscal discipline can be associated with peg regimes in SSA, but not necessarily with monetary union.

Keywords: Exchange rate management; CFA; monetary zones (search for similar items in EconPapers)
JEL-codes: C23 E31 E60 F31 (search for similar items in EconPapers)
Date: 2013-11-08
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Citations: View citations in EconPapers (8)

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