TITLE:
The Effect of Monetary Policy on Economy Growth of WAEMU Countries
AUTHORS:
Franck Edouard Gnahe, Fei-Ming Huang
KEYWORDS:
Monetary Policy, Growth, WAEMU, DOLS, FMOLS
JOURNAL NAME:
Open Journal of Business and Management,
Vol.8 No.6,
November
17,
2020
ABSTRACT: This paper examines the relationship between economic growth and monetary
policy. Using panel cointegration structure for the eight West African Economic
and Monetary Union (WAEMU) countries, we examine the impact of monetary policy on growth covering the period of
1988-2018. The results from estimation analysis showed that money supply and gross
fixed capital formation had positive and significant impact on economic growth.
The finding also shows that the real interest rate had significant effect on
economic growth. The domestic credit to the private sector and the official
exchange rate indicated a positive and statistically significant effect on
economic growth.