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Fonction de reaction de la banque centrale et credibilite de la politique monétaire: Cas de la BEAC

Authors
Publication Date
Keywords
  • E58 - Central Banks And Their Policies
  • E52 - Monetary Policy
  • E63 - Comparative Or Joint Analysis Of Fiscal And Monetary Policy
  • Stabilization
  • Treasury Policy
  • G28 - Government Policy And Regulation
  • C33 - Models With Panel Data
  • Longitudinal Data
  • Spatial Time Series
  • E61 - Policy Objectives
  • Policy Designs And Consistency
  • Policy Coordination
  • G21 - Banks
  • Depository Institutions
  • Micro Finance Institutions
  • Mortgages
Disciplines
  • Economics

Abstract

In this paper, using monetary policy rules, we build a model which describes the fixing of the interest rate by the Bank of Central African's States (BEAC). First, with a GMM adapted for a forward looking rule, we propose a reaction function for this central bank. The result shows that from 1986 to 2006, the formulation of the monetary policy strongly depends on the past interest rate. The rule describes well the interest rate fixation process by the BEAC which tends to be guide mainly by price stability than growth objectives. Secondly, we estimate a simple rule using an error correction model. In this case, the results were better but confirm those issued by the GMM method.

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