n Development Finance Agenda (DEFA) - Credible monetary policy and development in Africa : Monetarist versus Keynesian approach




In Africa, the concern of poverty at the forefront of economic policy, the need for inclusive growth and sustainable development, inter alia, brings forward the inevitable question of the monetary policy responsibility. Hence, using a statistical and theoretical debate method, I demonstrate that the Credible Monetary Policy paradox is traceable to Africa. Accordingly, with the promising economic environment in Africa, the promotion of a monetary policy oriented toward improving economic growth under the constraint of price stability is highly recommended. There are some noteworthy signs such the recent decision by the several central banks including the two CFA zone central banks, the European central bank, the central bank of South Africa, the Federal Reserve's to either maintain interest rates at a low level or reduce it despite tightening measures of monetary policy taken by the earlier in the year in the search of economic expansion. These are eloquent examples to reassure other African central banks in the choice of the pro-growth monetary policy option.


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