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The CFA Arrangements :, More than Just An Aid Substitute?, Etienne Yehoue

Label
The CFA Arrangements :, More than Just An Aid Substitute?, Etienne Yehoue
Language
eng
Abstract
The CFA franc zone has had one of the longest experiences with a fixed exchange rate for a convertible currency and regional integration of any group of developing countries. France, the anchor country, provides aid to support the zone. This paper asks whether the arrangements are more than just an aid substitute. The paper addresses this issue by evaluating the overall performance of the zone over the period 1960-2004. The analysis reveals that when the zone is hit by a negative shock, France increases its aid, thereby acting as a shock absorber. However, it also finds that the zone displays strong performance in two areas-price stability and fiscal policy. Thus the paper concludes that the arrangements are not an aid substitute; they have real macroeconomic value for the zone and complement aid
resource.governmentPublication
international or intergovernmental publication
Literary Form
non fiction
Main title
The CFA Arrangements :
Nature of contents
dictionaries
Responsibility statement
Etienne Yehoue
Series statement
IMF Working Papers
Sub title
More than Just An Aid Substitute?
Table Of Contents
Contents; I. Introduction; II. An Overview of Economic Performance in the Franc Zone; A. Inflation; B. Intra-Franc Zone Trade; C. Fiscal Discipline; D. Pattern of Risk Sharing; III. Exchanges with France; A. Aid; B. Trade; IV. Summary and Discussions of the Results; V. Concluding Remarks; References; Appendix; Methodology for Estimating the Degree of Risk Sharing via Different Channels; Tables; 1a. CFA Franc Zone Countries' Mean Annual Inflation Rate, 1960-2004; 1b. Non-CFA Franc Zone Countries' Mean Annual Inflation Rate, 1960-20042a. CFA Franc Zone Countries' Inflation Rate Variability, 1960-20042b. Non-CFA Franc Zone Countries' Inflation Rate Variability, 1960-2004; 3a. Average Ratio of Trade with CEMAC-to-Total Trade, 1960-2004; 3b. Average Ratio of Trade with WAEMU-to-Total Trade, 1960-2004; 3c. Average Ratio of Trade with CFA-to-Total Trade, 1960-2004; 4a. CEMAC's Fiscal Performance; 4b. WAEMU's Fiscal Performance; 4c. CFA Franc Zone's Fiscal Performance; 4d. Non CFA's Fiscal Performance; 5. Ranking of Annual Average Aid from France per capita, by Recipient, 1960-20046. 5-Year Average Ratio of France's Exports to CFA-to-World's Export to CFA, 1960-2004Figures; 1. Petroleum, Spot - Average Crude Price Index; 2a. 5-Year Average of Aggregate Aid from France to CEMAC; 2b. 5-Year Average of Aggregate Aid from France to WAEMU; 3a. Real Flows of Official Development Assistance to CEMAC, 1960-2004; 3a. Real Flows of Official Development Assistance to WAEMU, 1960-2004
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