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Le Policy mix de la zone UEMOA garantit-il la Stabilité Intérieure et la Croissance ?

Combey, Adama (2014): Le Policy mix de la zone UEMOA garantit-il la Stabilité Intérieure et la Croissance ?

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Abstract

A policy mix characterized by a monetary policy whose main objective is price stability and fiscal policy under fiscal discipline can he permit to keep prices and production levels of social optimum to sustain economic growth ? In this paper, an index of the policy mix is ​​built for grouping into a single indicator, the interactions of decisions of monetary and fiscal policy on monetary, financial and economic zone conditions. Then we mobilize recent methodological developments in particular, technical estimation models of spatial-dynamic panel that provide opportunities to consider the effects of neighborhood and unobserved heterogeneity of countries of the region to analyze the effects of Policy mix on inflation, the output gap and economic growth. The results provide empirical evidence that the articulation of monetary and fiscal policy in the current state, contributes to price stability without producing effects of overall macroeconomic stability to support economic growth in the long term . The paper argues for completing the current policy mix with two new instruments: an attenuation mechanism of propagation of shocks affecting the level of inflation and a mecanisme for output stabilization.

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