Strengthening the West African Economic and Monetary Union : The Role of Fiscal and Market Institutions in Economic Stabilization /

West African Economic and Monetary Union (WAEMU) countries face a well-known dilemma between the need to provide shock-smoothing mechanisms and the lack of adequate mechanisms to do so. WAEMU countries are subject to frequent and, to a large extent, asymmetric shocks. They have remained poorly diver...

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Главный автор: Basdevant, Olivier
Другие авторы: Imam, Patrick, Kinda, Tidiane, Zdzienicka, Aleksandra
Формат: Журнал
Язык:English
Опубликовано: Washington, D.C. : International Monetary Fund, 2015.
Серии:Departmental Papers; Departmental Paper ; No. 2015/011
Online-ссылка:Full text available on IMF
Описание
Итог:West African Economic and Monetary Union (WAEMU) countries face a well-known dilemma between the need to provide shock-smoothing mechanisms and the lack of adequate mechanisms to do so. WAEMU countries are subject to frequent and, to a large extent, asymmetric shocks. They have remained poorly diversified and vulnerable to external shocks, such as changing weather conditions. In addition to limited shock-smoothing mechanisms at the regional level, WAEMU members' ability to respond to shocks through national policies is also constrained by limited fiscal space and the need to preserve external stability-not only at the national level but also at the union level. In this context, developing a well-defined fiscal rule framework at the national level would help to build the necessary fiscal space for shock-smoothing. In addition, the development of specific shock-smoothing mechanisms-including a more developed and integrated financial sector-would also be critical. In addition, promoting financial development is also a challenge, which needs to be addressed in tandem with an adequate surveillance system. Some of these challenges have been faced by other monetary unions, such as the euro area.
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Объем:1 online resource (27 pages)
Формат:Mode of access: Internet
ISSN:2616-5333
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