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Article Dans Une Revue Economic Modelling Année : 2015

Revisiting the nexus between currency misalignments and growth in the CFA Zone

Carl Grekou
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Résumé

In this paper, we revisit the link between currency misalignments and economic growth by taking into account foreign currency-denominated debt dynamics for the CFA zone countries over the period 1985–2011. Relying on a BEER approach and using panel cointegration techniques, we first derive currency misalignments. We then estimate a panel smooth transition growth equation that allows currency misalignment to exert nonlinear impacts on both economic growth and foreign currency-denominated debt dynamics. We find that the nonlinear impact of currency misalignments on growth through the competitiveness channel is mitigated by the foreign currency-denominated debt dynamics through a valuation effect.

Dates et versions

hal-01620178 , version 1 (20-10-2017)

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Carl Grekou. Revisiting the nexus between currency misalignments and growth in the CFA Zone. Economic Modelling, 2015, 45, pp.142-153. ⟨10.1016/j.econmod.2014.11.015⟩. ⟨hal-01620178⟩
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