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Monetary-Fiscal Policy Interactions and Tests for Monetary Dominance in the West African Monetary Zone

Mogaji, Peter Kehinde (2017) Monetary-Fiscal Policy Interactions and Tests for Monetary Dominance in the West African Monetary Zone. Working Paper. UNSPECIFIED. (Unpublished)

Item Type: Reports, briefing/ working papers (Working Paper)

Abstract

This study applied the fiscal rule suggested by Davig and Leeper (2005, 2013) in which government revenue/GDP ratio reacts to government expenditure ratio, public debt ratio and output gap in modelling fiscal policy in the WAMZ. The applied monthly monetary and fiscal data span from 2001M1 to 2015M12. The econometric estimation method employed is the regime switching regressions of Markov regime switching models of the Taylor monetary rule (augmented by interest rate smoothing) and of the fiscal rule augmented with lagged values of government revenue scaled by output. Estimation results are varied across the six WAMZ countries. Given the high probability of staying in either of the regime, for the six WAMZ countries, these results are good enough for the membership of the proposed monetary integration of West Africa.

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More Information

Uncontrolled Keywords: Monetary Dominance, Fiscal Dominance, Monetary Policy-Fiscal Policy Interactions, WAMZ
Depositing User: Peter Mogaji

Identifiers

Item ID: 14532
URI: http://sure.sunderland.ac.uk/id/eprint/14532

Users with ORCIDS

ORCID for Peter Kehinde Mogaji: ORCID iD orcid.org/0000-0002-5790-8293

Catalogue record

Date Deposited: 14 Feb 2022 13:03
Last Modified: 14 Feb 2022 13:03

Contributors

Author: Peter Kehinde Mogaji ORCID iD

University Divisions

University of Sunderland in London

Subjects

Business and Management > Accounting and Finance

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