A Bird Eye from COVID-19 Crisis on the Relevance of the CFA Franc Devaluation of January 1994 and the Honeymoon Effect: An Assessment with the Equilibrium Real Exchange Rate. Cases of Cameroonian, Gabonese and Central African Republic Economies

19 Pages Posted: 10 Sep 2021

See all articles by Oscar Kuikeu

Oscar Kuikeu

Ecole Supérieure des Sciences Economiques et Commerciales (ESSEC),Université de Douala, Cameroun

Date Written: September 9, 2021

Abstract

The Relevance on policy orientation concerning currency have been assess in the past at the evening related to the cfa franc devaluation of January 1994 on Cameroon and Gabon. Once more it’s relatively means that despite the amount of debate on the peg into the cfa franc zone in particular with the devaluation of January 1994 this system of currency arrangement gives to his members states a lot of benefit as the honeymoon effect? In other words, in the currently context of COVID-19 what are the basis to assess on this issue? These are the main questions we are trying to answer, here. Globally speaking, considering the Results the Residual based approach of cointegration is an unvaluable engine to investigate on this kind of consideration about currency area. In fact, he have been able as well as to assess the effect of the peg on the currency arrangement but also to infer on the verifiability for the considering currency area of the honeymoon effect.

Keywords: Real exchange Rates, equilibrium real exchange rates, honeymoon effect, cointegrate

JEL Classification: C32, F33

Suggested Citation

Kuikeu, Oscar, A Bird Eye from COVID-19 Crisis on the Relevance of the CFA Franc Devaluation of January 1994 and the Honeymoon Effect: An Assessment with the Equilibrium Real Exchange Rate. Cases of Cameroonian, Gabonese and Central African Republic Economies (September 9, 2021). Available at SSRN: https://ssrn.com/abstract=3920603 or http://dx.doi.org/10.2139/ssrn.3920603

Oscar Kuikeu (Contact Author)

Ecole Supérieure des Sciences Economiques et Commerciales (ESSEC),Université de Douala, Cameroun ( email )

BP 1931 Douala-Cameroun
Douala
Cameroon

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