Séminaire de Béringer Gloglo, axe 3

Du 3 juin 2025 au 3 juin 2025

De 12h à 13h, en salle du Conseil (1er étage de la faculté de droit, économie et gestion).
Accessible en distanciel sur l'équipe Teams "Séminaires Granem" (réservé aux membres) ou sur demande.

Ce séminaire est organisé par l'axe 3 Mutations stratégiques, risque et soutenabilité financière.

• Béringer Gloglo, doctorant en Sciences économiques à la Faculté de Droit, Économie et Gestion
  

"Monetary policy viability in West African economic and monetary union: Insights from the mathematical Viability Theory"

Résumé :

In this article addendum to Krawczyk and Kim (2009), we apply a computational method based on viability theory to examine the viability of monetary policy in WAEMU under the fixed exchange rate regime, considering the objectives of internal and external equilibrium of the monetary authority, as well as the main interest rate instrument.

We extend the Krawczyk and Kim framework and introduce an additional process for the accumulation of foreign exchange reserves, which are crucial for monetary stability and credibility of the peg in a context of fixed exchange rate regime. Our study shows that the additional foreign reserves requirement constraint reduces significantly the degree of viability of monetary policy in WAEMU. Meanwhile, the results provide no evidence indicating a systematic rejection of feasibility for a viable monetary policy, despite the presence of an additional constraint pertaining to reserves.

However, excessive accumulation of reserves reduces the scope of action available to the central bank and, above all, can only be achieved at the price of, i.e. penalises economic growth. The underlying rationale for this phenomenon could be attributed to the deprivation effect of excessive accumulated reserves on investment resources. In particular, we find that a reserve level of 60% provides the central bank with the greatest leverage.