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Endogenous Optimal Currency Areas: the Case of the Central African Economic and Monetary Community

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  • Fabrizio Carmignani

Abstract

The Central African Economic and Monetary Community (CAEMC) has been a monetary union for several decades now. According to the hypothesis of endogenous optimal currency areas (OCAs), the degree of business cycle synchronisation across its member states should be significantly higher today than forty years ago. This paper examines cycle synchronisation along three different statistical dimensions and shows that (i) synchronisation has remained low throughout the period 1960--2007, but (ii) it has marginally increased over time. These findings have important implications for the design of the economic integration process in Africa. A chronology of business cycles in CAEMC countries is provided. Copyright 2010 The author 2009. Published by Oxford University Press on behalf of the Centre for the Study of African Economies. All rights reserved. For permissions, please email: journals.permissions@oxfordjournals.org, Oxford University Press.

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  • Fabrizio Carmignani, 2010. "Endogenous Optimal Currency Areas: the Case of the Central African Economic and Monetary Community," Journal of African Economies, Centre for the Study of African Economies, vol. 19(1), pages 25-51, January.
    • Handle: RePEc:oup:jafrec:v:19:y:2010:i:1:p:25-51
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    2. Mattera, Raffaele & Franses, Philip Hans, 2023. "Are African business cycles synchronized? Evidence from spatio-temporal modeling," Economic Modelling, Elsevier, vol. 128(C).
    3. J. Acalin & B. Cabrillac & G. Dufrénot & L. Jacolin & S. Diop, 2015. "Financial integration and growth correlation in Sub-Saharan Africa," Working papers 561, Banque de France.
    4. Avom, Désiré & Mignamissi, Dieudonné, 2013. "Évaluation et analyse du potentiel commercial dans la communauté économique et monétaire de l’Afrique centrale (CEMAC)," L'Actualité Economique, Société Canadienne de Science Economique, vol. 89(2), pages 115-145, Juin.
    5. Any Flore Djoumessi Djoukouo, 2023. "Recessions and recoveries in Central African countries: Lessons from the past," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(6), pages 1121-1142, August.
    6. Raji, Rahman Olanrewaju, 2012. "REAL Exchange Rate Misalignment and Economic Performance of WEST AFRICAN MONETARY ZONE:Implications for macroeconomic unionisation," MPRA Paper 37385, University Library of Munich, Germany.

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