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Bank Credit Channel of Monetary Policy in the UEMOA Zone: A TVP-VAR Approach

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  • Prao Yao Séraphin
  • Anzara Xavier Fabrice Méa

Abstract

The main objective of this article is to analyze the transmission of monetary policy in the WAEMU zone via the bank credit channel, using monthly data from January 1999 to December 2021. Methodologically, we apply a TVP-VAR model that allows coefficients to vary over time to reflect potential changes in time series dynamics. First, we find that the bank credit channel remains relatively weak in the union. Secondly, monetary policy shocks have evolved over time. Thirdly, the tertiary sector is relatively more responsive to monetary policy shocks than the primary and secondary sectors.

Suggested Citation

  • Prao Yao Séraphin & Anzara Xavier Fabrice Méa, 2024. "Bank Credit Channel of Monetary Policy in the UEMOA Zone: A TVP-VAR Approach," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 16(1), pages 1-73, January.
  • Handle: RePEc:ibn:ijefaa:v:16:y:2024:i:1:p:73
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    6. Jérôme Creel & Sandrine Levasseur, 2006. "Canaux de transmission de la politique monétaire dans l'ue. Le cas de trois nouveaux entrants," Revue économique, Presses de Sciences-Po, vol. 57(4), pages 881-898.
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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