<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>In this paper, the extant literature on the impact of external shocks on monetary policy effectiveness with reference to non-WAEMU countries is reviewed. The importance of this literature review is to provide contemporary perspectives to scholars and policymakers on the relevance of the incidence of external shocks to the effectiveness of monetary policy with reference to non-WAEMU countries. The literature reviewed in this study shows that, on the whole, the extent and the degree to which external shocks are transmitted to the domestic economy substantially depend on a plethora of features, namely the absence of exchange rate flexibility; a strong export concentration, especially with respect to commodities; the level of global economic integration; restricted capacities of production; the absence of competitiveness in exports; over-reliance on foreign aid; foreign reserves that are not adequate and capital account openness.</p>
</abstract>

In this paper, the extant literature on the impact of external shocks on monetary policy effectiveness with reference to non-WAEMU countries is reviewed. The importance of this literature review is to provide contemporary perspectives to scholars and policymakers on the relevance of the incidence of external shocks to the effectiveness of monetary policy with reference to non-WAEMU countries. The literature reviewed in this study shows that, on the whole, the extent and the degree to which external shocks are transmitted to the domestic economy substantially depend on a plethora of features, namely the absence of exchange rate flexibility; a strong export concentration, especially with respect to commodities; the level of global economic integration; restricted capacities of production; the absence of competitiveness in exports; over-reliance on foreign aid; foreign reserves that are not adequate and capital account openness.

A Review of the Impact of External Shocks on Monetary Policy Effectiveness in Non-WAEMU Countries

Studia Universitatis „Vasile Goldis” Arad – Economics Series

This work is licensed under the Creative Commons Attribution 4.0 International License.

In this paper, the extant literature on the impact of external shocks on monetary policy effectiveness with reference to non-WAEMU countries is reviewed. The...

A Review of the Impact of External Shocks on Monetary Policy Effectiveness in Non-WAEMU Countries

Publié en ligne: 23 juil. 2021

Pages: 37 - 59

Reçu: 01 mars 2021

Accepté: 01 mai 2021

DOI: https://doi.org/10.2478/sues-2021-0013

Mots clés
external shocks, monetary policy, monetary aggregate targeting, non-WAEMU countries

© 2021 Kordzo Sedegah et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

A Review of the Impact of External Shocks on Monetary Policy Effectiveness in Non-WAEMU Countries

Publié en ligne: 23 juil. 2021

Pages: 37 - 59

Reçu: 01 mars 2021

Accepté: 01 mai 2021

DOI: https://doi.org/10.2478/sues-2021-0013

Mots clésexternal shocks, monetary policy, monetary aggregate targeting, non-WAEMU countries

© 2021 Kordzo Sedegah et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Mots clés
external shocks, monetary policy, monetary aggregate targeting, non-WAEMU countries