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Taux de change et mésalignements du franc CFA avant et après l’introduction de l’euro

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  • Blaise Gnimassoun

Abstract

In 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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File URL: http://economix.fr/pdf/dt/2012/WP_EcoX_2012-03.pdf
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Bibliographic Info

Paper provided by University of Paris West - Nanterre la Défense, EconomiX in its series EconomiX Working Papers with number 2012-3.

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Length: 30 pages
Date of creation: 2012
Date of revision:
Handle: RePEc:drm:wpaper:2012-3

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Keywords: Misalignments; panel cointegration; CFA Franc; anchor currency;

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References

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  8. Christophe Hurlin & Valérie Mignon, 2006. "Une Synthèse des Tests de Racine Unitaire sur Données de Panel," Post-Print halshs-00078770, HAL.
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Cited by:
  1. Issiaka Coulibaly & Blaise Gnimassoun, 2012. "Optimality of a monetary union : New evidence from exchange rate misalignments in West Africa," EconomiX Working Papers 2012-37, University of Paris West - Nanterre la Défense, EconomiX.
  2. Carl Grekou, 2014. "Revisiting the nexus between currency misalignments and growth in the CFA Zone," EconomiX Working Papers 2014-4, University of Paris West - Nanterre la Défense, EconomiX.

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