The determinants of inflation in the CEMAC zone
the role of informel finance
DOI:
https://doi.org/10.59051/joaf.v14i1.632Keywords:
Keywords : inflation, informal finance, fiduciary money, interest rate spread, ECMCA.Abstract
Purpose : The purpose of this paper is to identify the determinants of inflation in the countries of the Central African Monetary Union (CEMAC) by focusing on the role of informal finance.
Methodology : We use dynamic panel modeling with the PMG estimator over the period 2000-2020.
Result : We find that informal finance has an influence on inflation in the long run and not in the short run in all countries of the union. It is important to consider such a sector to decide on the advisability of integrating it into the strategies of the BEAC to maintain price stability in the ECMCA.
Originality of the article : The originality of the article lies in the proposal of an indicator that allows to measure the liquidity of the informal sector and to verify its effects on inflation in the member countries of a monetary union composed of developing countries such as the ECMCA.
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