Study Finds Broader Monetary Union in ECOWAS Not Beneficial
The study looked at how well the economies in West Africa sync up in terms of their ups and downs. They used a method called the Hodrick-Prescott filter to break down the GDP growth rates of these countries into two parts - one that stays the same over time and one that changes. They found that while some sub-economies in West Africa have similar business cycles, overall, the countries in the region have different cycles. This suggests that creating a bigger monetary union in 2020 with all West African countries might not be a good idea. However, there is a chance that forming this union could help fix economic differences in the region after it's already been done, rather than before.