In this paper we fit a vector error correction model (VECM) in output and prices to data from 10 countries of the CFA Franc Zone. This model allows for various cross-country interactions in both the short run and the long run. The VECM parameters are used to estimate persistence profiles of...

The determination of long-run aggregate supply is a feature which short-run models of macroeconomic policy coordination tend to neglect but which has implications for the setting of interest rates. In this paper, the authors develop an open-economy model of output maximization, where investment...

Adherence to a pegged exchange rate regime has the potential to affect inflation in two ways: by instilling monetary discipline and by altering the relationship between money and prices, because shocks to the money stock are absorbed partly by changes in the balance of payments. Although the...

This paper analyses the evolution of demand for bank deposits in Cote d'Ivoire over a period including the CFA Franc devaluation in 1994. Once we have allowed for smooth transitions in the deterministic component of the demand function, the estimated relationship between deposits and income and...

Using a game-theoretic model, this paper explores the positive and normative economics of government policy choices in a monetary union. If individual governments have control over fiscal policy, then the non-cooperative solution to the model is not Pareto optimal. Moreover, the distribution of...

An eclectic model of investment is constructed for Kenya and Cote d'Ivoire, using a two-step Engle-Granger approach to deal with non-stationary variables. Both monetary and financial integration are found to play a role in the determination of investment. Copyright 1993 by Oxford University Press.

Skålnes, Tor The Politics of Economics Reform in Zimbabwe, Continuity and Change in Development Copyright Blackwell Publishers Ltd 1997.

Inflation can affect both the dispersion of commodity-specific price levels across locations (relative price variability, RPV) and the dispersion of inflation rates (relative inflation variability, RIV). Some menu-cost models and models of consumer search suggest that the RIV-inflation...