Since the mid-1970s the annual inflation rate in Africa has averaged more than 15 percent, with many countries experiencing rates of 20 percent or more. Inflation rates of this magnitude have significant adverse effects on the financial sectors of African countries, particularly in the context...

This paper provides updated information on the external debt problem of sub-Saharan Africa. Between 1980 and 1990 the region`s external debt more than tripled, to US$171 billion, while debt service payments and rescheduling rose by more than 150 percent to US$20 billion. In addition, the region...

This paper examines whether capital outflows may have contributed to output declines during the Asian Crisis by reducing the financing available for domestic investment. Panel data regressions suggest a positive, short-term relationship between net capital inflows and investment during the...

Real GDP growth and real effective exchange rate (REER) appreciation appear cointegrated with the current and financial accounts of the U.S. balance of payments. On this basis, we estimate reduced form equations showing that expected changes and shocks to real GDP, the REER, energy prices, and...

La lourde charge que la dette exteacute;rieure repreacute;sente pour les pays d`Afrique subsaharienne et le grave problegrave;me fondamental qu`elle pose ont largement retenu l`attention ces derniegrave;res anneacute;es. Le preacute;sent document examine l`eacute;volution reacute;cente des montants de...

This paper examines the relative importance of monetary growth and exchange rate depreciation as causes of inflation in a sample of 10 Sub-Saharan African countries, using quarterly data from 1978 through 1989. Causality tests and impulse response functions derived from vector autoregression...

The massive external debt burden of sub-Saharan Africa has gained widespread attention as a serious policy issue during the past few years. This paper reviews recent trends in the debt levels and economic performance of sub-Saharan countries and assesses a number of proposals for reducing their...