IMF working paper calls for consistency in East African monetary policy
A new working paper from the International Monetary Fund looking into the transmission of monetary policy in the East African Community (EAC) has found the importance of different transmission channels differs from country to country.
The paper, by Hamid Davoodi, Shiv Dixit and Gabor Pinter, also finds that different instruments of monetary policy are sometimes used in contradictory directions – harming their effectiveness but also posing challenges to harmonisation of monetary policies across the EAC and transition to a future East African Monetary Union.
They conclude that in order to strengthen the monetary transmission mechanism in the EAC, the member states – Burundi, Kenya, Rwanda, Tanzania and Uganda – need to address a number of challenges, including ensuring that monetary targets and interest rate policy are consistent with each other.
To read the paper in full, click here.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com test test test
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com test test test
More on Monetary Policy
Fed cuts by 25bp amid another three-way split on FOMC
Miran votes for deeper cut, and Goolsbee and Schmid opt to hold, as experts point to stagflation risks
South Africa’s inflation target cut a ‘major’ feat, says IMF
Move likely to reduce borrowing costs and improve debt sustainability, institution says
Lesetja Kganyago on a 3% target and risks posed by rising debt in a fractured system
The Sarb governor speaks about a lower inflation target, the impact of high developed-world debt, the G20’s payments efforts and the fracturing of the multi-lateral system
12 angry members: why dissent is growing on the FOMC
Hardening views on wisdom of further cuts mean committee’s next meeting is unlikely to be harmonious
NBFIs could dent transmission – Bundesbank board member
Growing non-bank activity could diminish banking channel’s importance, says Köhler-Geib
BoE’s Pill focused on ‘nominal momentum’ in UK economy
Chief economist says inflation dynamics seem to have changed, but there is a lot of noise in the data
Fed vice-chair says progress on inflation has stalled
Jefferson pushes for caution as US central bank lowers rates towards neutral
BoE paper highlights ‘cost-of-carry’ channel of monetary policy
High inventory levels can boost transmission, authors say