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Article Dans Une Revue Journal of African Economies Année : 2010

Asymmetric Terms-of-Trade Shocks in a Monetary Union: An Application to West Africa

Résumé

We propose a two-country dynamic stochastic general equilibrium model of a monetary union facing asymmetric terms-of-trade shocks, calibrated on Nigeria and West African Economic and Monetary Union (WAEMU). Three monetary regimes are successively studied at the union level: a flexible exchange rate with constant money supply, a flexible exchange rate with an accommodating monetary policy and a fixed exchange-rate regime. We find that, in the face of oil-price shocks, the most stabilising regime for Nigeria is a fixed money supply, whereas it is a fixed exchange rate for WAEMU. However, the introduction of an oil-stabilisation fund can reduce the disagreement on the common policy rule. Furthermore, the two zones may agree on a fixed money-supply rule in the face of both oil- and agricultural-price shocks.

Dates et versions

hal-00634785 , version 1 (23-10-2011)

Identifiants

Citer

Agnès Bénassy-Quéré, Loïc Batté, Benjamin Carton, Gilles Dufrénot. Asymmetric Terms-of-Trade Shocks in a Monetary Union: An Application to West Africa. Journal of African Economies, 2010, 19 (5), pp.657-690. ⟨10.1093/jae/ejq022⟩. ⟨hal-00634785⟩
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