Testing nonlinear inflation convergence for the central African economic and monetary community

Emmanuel Anoruo, Vasudeva N. R. Murthy

Research output: Contribution to journalArticle

6 Citations (Scopus)

Abstract

This paper uses nonlinear unit root testing procedures to examine the issue of inflation convergence for the Central African Economic and Monetary Community (CEMAC) member states including Cameron, Central African Republic, Chad, Equatorial Guinea, Gabon and the Republic of Congo. The results from nonlinear STAR unit root tests suggest that inflation differentials for the sample countries are nonlinear and mean reverting processes. These results provide evidence of inflation convergence among countries within CEMAC. The finding of inflation convergence indicates the feasibility of a common monetary policy and/or inflation targeting regime within CEMAC.

Original languageEnglish (US)
Pages (from-to)1-7
Number of pages7
JournalInternational Journal of Economics and Financial Issues
Volume4
Issue number1
StatePublished - 2014

Fingerprint

Africa
Inflation convergence
Testing
Economics
Inflation differentials
Monetary policy
Unit root testing
Guinea
Chad
Unit root tests
Inflation targeting
Mean-reverting process

All Science Journal Classification (ASJC) codes

  • Economics, Econometrics and Finance(all)

Cite this

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