Impact of monetary policy transmission mechanism in West African countries
The study analyzed the impact of monetary policy shocks on economic growth in 12 countries of the Economic Community of West African States (ECOWAS), using quarterly data from 1980(1) to 2017(4). We employed a Panel Structural Vector Autoregressive (Panel SVAR) for the modeling of monetary policy tr...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Sciendo
2022-03-01
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| Series: | Studia Universitatis Vasile Goldis Arad, Seria Stiinte Economice |
| Subjects: | |
| Online Access: | https://doi.org/10.2478/sues-2022-0002 |
| _version_ | 1811215107920756736 |
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| author | Famoroti Jonathan Olusegun Adeleke Omolade |
| author_facet | Famoroti Jonathan Olusegun Adeleke Omolade |
| author_sort | Famoroti Jonathan Olusegun |
| collection | DOAJ |
| description | The study analyzed the impact of monetary policy shocks on economic growth in 12 countries of the Economic Community of West African States (ECOWAS), using quarterly data from 1980(1) to 2017(4). We employed a Panel Structural Vector Autoregressive (Panel SVAR) for the modeling of monetary policy transmission shock in the segregated sub-regions of WAMZ and WAEMU. The key results suggest that fluctuations of the monetary policy do not have significant effects on the economic growth but significantly impact the general price level. Moreover, the study finds that the exchange rate is persistently a vital mechanism that significantly influences the variables of the real economy. Our estimates further suggest that there is idiosyncratic evidence found in the results, which is the anomaly of the Price puzzle. |
| first_indexed | 2024-04-12T06:16:57Z |
| format | Article |
| id | doaj.art-34da2703f83e4636a5e0681339e5f2e3 |
| institution | Directory Open Access Journal |
| issn | 2285-3065 |
| language | English |
| last_indexed | 2024-04-12T06:16:57Z |
| publishDate | 2022-03-01 |
| publisher | Sciendo |
| record_format | Article |
| series | Studia Universitatis Vasile Goldis Arad, Seria Stiinte Economice |
| spelling | doaj.art-34da2703f83e4636a5e0681339e5f2e32022-12-22T03:44:27ZengSciendoStudia Universitatis Vasile Goldis Arad, Seria Stiinte Economice2285-30652022-03-01321204210.2478/sues-2022-0002Impact of monetary policy transmission mechanism in West African countriesFamoroti Jonathan Olusegun0Adeleke Omolade1University of Kwazulu-Natal, South AfricaUniversity of Kwazulu-Natal, South AfricaThe study analyzed the impact of monetary policy shocks on economic growth in 12 countries of the Economic Community of West African States (ECOWAS), using quarterly data from 1980(1) to 2017(4). We employed a Panel Structural Vector Autoregressive (Panel SVAR) for the modeling of monetary policy transmission shock in the segregated sub-regions of WAMZ and WAEMU. The key results suggest that fluctuations of the monetary policy do not have significant effects on the economic growth but significantly impact the general price level. Moreover, the study finds that the exchange rate is persistently a vital mechanism that significantly influences the variables of the real economy. Our estimates further suggest that there is idiosyncratic evidence found in the results, which is the anomaly of the Price puzzle.https://doi.org/10.2478/sues-2022-0002economic growthecowasmonetary policy shocksand panel svarc01e52e58 |
| spellingShingle | Famoroti Jonathan Olusegun Adeleke Omolade Impact of monetary policy transmission mechanism in West African countries Studia Universitatis Vasile Goldis Arad, Seria Stiinte Economice economic growth ecowas monetary policy shocks and panel svar c01 e52 e58 |
| title | Impact of monetary policy transmission mechanism in West African countries |
| title_full | Impact of monetary policy transmission mechanism in West African countries |
| title_fullStr | Impact of monetary policy transmission mechanism in West African countries |
| title_full_unstemmed | Impact of monetary policy transmission mechanism in West African countries |
| title_short | Impact of monetary policy transmission mechanism in West African countries |
| title_sort | impact of monetary policy transmission mechanism in west african countries |
| topic | economic growth ecowas monetary policy shocks and panel svar c01 e52 e58 |
| url | https://doi.org/10.2478/sues-2022-0002 |
| work_keys_str_mv | AT famorotijonathanolusegun impactofmonetarypolicytransmissionmechanisminwestafricancountries AT adelekeomolade impactofmonetarypolicytransmissionmechanisminwestafricancountries |