IMF Working Papers

Monetary Policy in Unified Currency Areas: The Cases of the Cama and Ecca During 1976-90

By Jean-Claude Nascimento

January 1, 1994

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Jean-Claude Nascimento. Monetary Policy in Unified Currency Areas: The Cases of the Cama and Ecca During 1976-90, (USA: International Monetary Fund, 1994) accessed December 26, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

The paper compares the performance of monetary policy in the Central African Monetary Area (CAMA) and the Eastern Caribbean Currency Area (ECCA) during 1976-90. Their institutional setup and mechanism for monetary control are examined to explain the opposite trends in the net external position of their banking system during this period. It concludes that monetary policy in the ECCA succeeded by relying on active interest rate management aimed at stemming capital outflows and adhering to stringent rules aimed at limiting credit expansion. The passive policy stance in the CAMA contributed to a significant redistribution of the area’s money stock.

Subject: Bank credit, Banking, Credit, Domestic credit, International reserves, Monetary base, Monetary expansion, Monetary policy, Money

Keywords: Bank credit, Banking system, BEAC credit, BEAC discount rate, BEAC statute, CAMA country, CAMA member, CAMA money stock, Caribbean, Credit, Domestic credit, ECCA relative, ECCA to the world market, Exchange regime, Financial market, Monetary base, Monetary expansion, Money market rate, Money stock, Single currency, WP

Publication Details

  • Pages:

    48

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 1994/011

  • Stock No:

    WPIEA0111994

  • ISBN:

    9781451926002

  • ISSN:

    1018-5941

Notes

Compares the performance of monetary policy in the Central African Monetary Area (CAMA) and the Eastern Caribbean Currency Area (ECCA) during 1976-90.

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