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Making Monetary Policy More Effective :, The Case of the Democratic Republic of the Congo, Felix Fischer, Charlotte Lundgren, Samir Jahjah

The paper looks at the challenges of conducting monetary policy in a context of high dollarization of the banking system and weak institutions in the Democratic Republic of the Congo. The empirical analysis confirms the limited effectiveness of the Central Bank of Congo in controlling inflation, despite a rapid policy response to inflation shocks. Options available to enhance the effectiveness of monetary policy are limited. After exploring the pros and cons of different exchange regimes we conclude that strengthening the current monetary policy framework remains the first-best option, given the country’s exposure to frequent terms-of-trade shocks
Table Of Contents
Cover; ABSTRACT; CONTENTS; I. INTRODUCTION; II. BACKGROUND; A. Some Stylized Facts; FIGURES; 1. Real GDP Growth and Inflation, 1996-2012.; 2. Development of monetary aggregates, 2006-2012.; 3. Price Developments; 5. Broad money as share of GDP in selected countries; B. The Current Monetary Policy Framework; BOXES; 1. The BCC's Procedures for Estimating Money Demand; C. Assessing the Efficacy of Monetary Policy; TABLES; 1. Vector Error Correction Estimates; 2. Policy Response to Inflation Shocks and Deviation from the cointegration equation; III. MONETARY POLICY CONSTRAINTS
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (32 p.)
Specific Material Designation
Form Of Item

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