Eco-currency: Proposition of a monetary policy design for a unitary currency program of a frailty economic zone.

Tweneboah Senzu, Emmanuel (2021): Eco-currency: Proposition of a monetary policy design for a unitary currency program of a frailty economic zone. Forthcoming in: : pp. 1-23.

Abstract

The desire to rule a system has never been the interest of a contemporary civilize man rather than to successfully govern. The discoverable tool of a modern man as the greatest invention, to centrally manage a complex market system, dynamically evolving in it, the interaction process of agents, has been a quality policy design and application, which is often guided by an advanced theoretical inductive inference, deduce from historic experience in a framework of assumptions relating to a working system. The constructive foundation of this paper does appreciate the fact that in the practice of policy for unitary currency program involving sovereign nations, is not entirely new epistemology in the field of monetary economics, however, this very study is a complete unique in its deduction because it involves fragile economies managing soft currencies against hard currency economies, to promote sustainable growth, and compel for a competitive development using natural rate of interest as a policy sign-post.

• Item Type: MPRA Paper
• Language: English
• Keywords: Monetary economics, policy, Eco-currency, Kalman Filter, Wicksellian, Fragile economy
• Subjects: E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E42 - Monetary Systems ; Standards ; Regimes ; Government and the Monetary System ; Payment Systems; E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E43 - Interest Rates: Determination, Term Structure, and Effects; E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E44 - Financial Markets and the Macroeconomy; E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E47 - Forecasting and Simulation: Models and Applications; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E52 - Monetary Policy

References

[1] Amato M. and Nubukpo K. (2020), “A new currency for West African States: PSL Quarterly Review. 72(292):3-26

[2] Buchs T. and Mathisen, J. (2005), “Competition and Efficiency in Banking; behaviourial evidence from IMF. Working Paper, n.05/17, Washington (DC): International Monetary Fund.

[3] Eggertsson, G.B., Mehrotra, N. R., Singh, S. R., Summers, L. H., (2015), A contagious malady? Open economy dimensions of secular stagnation

[4] Hansen, A. H. (1953), A guide to Keynes. New York: McGraw Hill.

[5] Hicks, J. R. (1937). “Mr. Keynes and the ‘Classics’, a suggested interpretation. Econometrica 5(2):147-159. Doi: 10.2307/1907242

[6] IMF (2014), World Economic Outlook: recovery strengthens, remain uneven. Washington, DC.

[7] Kalman R. E. (1960), A new approach to linear filtering and prediction problems. Trans. ASME. Journal of Basic Engineering Vol.82, pp.34-45

[8] Laubach, T. and Williams, S. C. (2003), Measuring the natural rate of Interest. Rev. Econ. Stat., 85 (4). pp. 1063-1070

[9] Lubik, A. T., and Matthes, C. (2015), Calculating the Natural Rate of Interest: A comparison of two alternative approaches. Richmond Reserve Bank. www.ideas.repec.org

[10] Saxegaard M. (2006), “Excess liquidity and effectiveness of monetary policy: Evidence from Sub-Saharan Africa”, IMF working paper, n.06/115, Washington (DC): International Monetary Fund.

[11] Senzu, T. E. (2019b), “Theoretical perspective of dynamic credit risk analysis and lending model; effective to enterprises of fragile economy. https://papers.ssrn.com/id=3324909

[12] Senzu, T. E. (2021a), The applied fiscal-monetary theory: character of constraint and essentials to the advancement of developing economies. https://mpra.ub.uni-muenchen.de/104994/MPRA paper No.104994.

[13] Senzu, T. E. (2020c), The advanced proposed architecture of Eco-currency; technical analysis of West Africa single currency program. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3663885

[14] Taylor J. B. (1993), Discretion versus policy rules in practice. Cam.-Roch. Conf. Ser. Public Policy 39 (1993). pp.195-214

[15] Wicksell, K., (1898) Interest and Price

[16] World Bank (IBRD-IDA). www.data.worldbank.org