New model predicts economic shocks in African CFA Franc Zone
The article looks at how economic shocks affect countries in the CFA Franc Zone in Africa. By using a modified method, the researchers can see how changes in output and prices impact these countries. The costs of being in a monetary union depend on how similar these shocks are across countries and how they affect the economy in the long run. The conclusions about what policies to follow depend on which economic factors are most important to policymakers and how quickly they can react to a shock.