Taux de change et mésalignements du franc CFA avant et après l’introduction de l’euro
AbstractIn this paper, we rely on panel cointegration techniques to estimate the equilibrium exchange rate of the CFA Franc according to the BEER approach (Behavioural Equilibrium Exchange Rate). Examination of the CFA Franc estimated misalignments revealed that flexibility for the CFA zone in terms of price competitiveness has been greatly reduced since 2002 with the appreciation of the euro, becoming almost zero in 2009. Our results also reveal heterogeneous misalignments across exchange rates. Thus, while some countries have experienced an exchange rate undervaluation in 2009, Ivory Coast has meanwhile reached a level of overvaluation comparable to that observed in 1993. By studying the sources of CFA misalignments, we show the existence of a significant impact of the anchor currency misalignment (euro, French Franc) on the CFA misalignments with a greater influence for the French franc.
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Bibliographic InfoPaper provided by University of Paris West - Nanterre la Défense, EconomiX in its series EconomiX Working Papers with number 2012-3.
Length: 30 pages
Date of creation: 2012
Date of revision:
Misalignments; panel cointegration; CFA Franc; anchor currency;
Find related papers by JEL classification:
- F31 - International Economics - - International Finance - - - Foreign Exchange
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
- E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-03-08 (All new papers)
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