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Analysis and evaluation of the Monetary Policy Transmission Channels in the CEMAC: A SVAR and SPVAR Approaches

Listed author(s):
  • BIKAI, J. Landry
  • KENKOUO, Guy Albert

This paper’s main objective is to analyse and identify the the effects of monetary policy decisions on activity and inflation, and determines the main transmission channel in the CEMAC area. The results suggest that: (i) for each country, using a SVAR, the transmission mechanisms are very weak, and the common monetary policy has asymmetrical lagged effects on activity. We specifically found that the transmission mechanisms barely work in Congo, the Central African Republic, Gabon, Tchad and Equatorial Guinea, but a shock on broad money and the policy rate of the central bank has significant but weak effects on activity in Cameroon; and (ii) the Panel VAR analysis also confirms the weakness of the transmission mechanisms in the sub region. However, a positive shock on credit exhibits inflationary effects that last about three quarters.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 78227.

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Date of creation: 12 Jan 2015
Handle: RePEc:pra:mprapa:78227
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