TITLE:
Monetary Policy and Macroprudential Policy in Fixed Exchange: The Case of the Bank of Central African States
AUTHORS:
Symphorien Engone Mve
KEYWORDS:
Policy-Mix, Monetary Policy, Fixed Exchange Rate, Financial Stability, Macroprudential Policy
JOURNAL NAME:
Theoretical Economics Letters,
Vol.12 No.5,
October
11,
2022
ABSTRACT: This article examines the nature of the policy-mix between monetary
policy and macroprudential policy in the member countries of the Bank of
Central African States (BCAS). For this, we test a monetary rule “augmented” by
the financial stability objective using a regime-switching panel model over the
period 2006-2018. The results show that the nature of the policy-mix between
monetary policy and macroprudential policy depends on the economic situation,
assessed by the evolution of BCAS’s net foreign assets.