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Periodical article | Leiden University catalogue | WorldCat |
Title: | Economic development and monetary policy in two neighbouring African countries: the Gambia and Senegal |
Author: | Nyong, Michael O. |
Year: | 1995 |
Periodical: | The Nigerian Journal of Economic and Social Studies |
Volume: | 37 |
Issue: | 2 |
Pages: | 111-125 |
Language: | English |
Geographic terms: | Senegal Gambia |
Subject: | monetary policy |
Abstract: | On the basis of empirical analysis, the author assesses the effectiveness of monetary policy in the Gambia and Senegal between 1964/65 and 1990. The reported regression results indicate a strong influence on monetary policy of real gross domestic product, taken as a performance indicator for the growth objective, and of balance of payments on the current account, taken as a performance indicator for balance of payments equilibrium. Maintenance of price stability was found to be important in both countries. Monetary policymaking in Senegal was dominated by the objectives of growth, price stability and balance of payments equilibrium, in the Gambia by growth, price stability, equilibrium in the balance of payments and improvement in life expectancy at birth. The lag in the response of monetary policy, as indicated by money supply, to changes in the economic environment in the Gambia was very long, possibly destabilizing, while for Senegal the lag in the adjustment in monetary policy as indicated by domestic credit creation was short. A possible reason may be found in the differing level of development of the financial markets of the two countries. Neither country performed optimally under the structural adjustment programmes introduced in 1985. Bibliogr., note, sum. |