Macroeconomic Fluctuations in Sub-Saharan Africa

• Published in: IMF staff papers Vol. 45; no. 1; pp. 132 - 160
• Main Authors: Hoffmaister, Alexander W., Roldós, Jorge E., Wickham, Peter
• Format: Journal Article
• Language: English
• Published: Washington International Monetary Fund 01.03.1998; Palgrave Macmillan
• Series: IMF Staff Papers
• Subjects: Africa; American dollar; CFA franc; Comparative analysis; Data analysis; Developing countries; Economic development; Economic fluctuations; Economic growth; Economic models; Economic shock; Exchange rates; Expenditures; Fixed exchange rates; Foreign exchange rates; GDP; Gross Domestic Product; International financial institutions; International trade; Investment; LDCs; Macroeconomics; Output rate; Price shocks; Public enterprise; Public sector; Real exchange rates; Standard deviation; Studies; Sub-Saharan Africa; Supply shocks; Tax reform; Terms of trade; Vector autoregression; Sub-Saharan Africa; Africa
• ISSN: 0020-8027; 1020-7635; 2041-4161; 1564-5150; 2041-417X
• DOI: 10.2307/3867332

The sources of macroeconomic fluctuations in sub-Saharan Africa are examined by comparing the CFA franc countries with the non--CFA franc countries. External shocks, especially terms of trade shocks, appear to have a greater influence on fluctuations of output and the real exchange rate in CFA franc countries. This result does not appear to be associated with differences in the economic structure but may reflect the fixed exchange rate regime, which does not (partially) buffer these countries from external shocks. Macroeconomic fluctuations in non--CFA franc countries are similar to those in other developing countries, particularly in Latin America.