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Macroeconomic Fluctuations in Sub-Saharan Africa

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  • Mr. Willy A Hoffmaister

Abstract

The sources of macroeconomic fluctuations in sub–Saharan African are examined by comparing the CFA franc countries with the non–CFA franc countries. External shocks, especially terms of trade shocks, appear to have a greater influence on fluctuations of output and the real exchange rate in CFA franc countries. This result does not appear to be associated with differences in the economic structure but may reflect the fixed exchange rate regime, which does not (partially) buffer these countries from external shocks. Macroeconomic fluctuations in non–CFA franc countries are similar to those in other developing countries, particularly in Latin America.

Suggested Citation

  • Mr. Willy A Hoffmaister, 1997. "Macroeconomic Fluctuations in Sub-Saharan Africa," IMF Working Papers 1997/082, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:1997/082
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    References listed on IDEAS

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    1. Eduardo Borensztein & Carmen M. Reinhart, 1994. "The Macroeconomic Determinants of Commodity Prices," IMF Staff Papers, Palgrave Macmillan, vol. 41(2), pages 236-261, June.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    WP; CFA franc; CFA franc country; Macroeconomic fluctuations; exchange arrangements; Sub-Saharan Africa; sub-Saharan Africa country; terms of trade shock; Non-CFA Franc country; open economy; Real exchange rates; Terms of trade; Trade balance; Exchange rate arrangements; Inflation;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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