Foreign monetary policy shocks impact Sub-Saharan Africa's GDP growth differently.
The article looks at how changes in monetary policy in Europe and the US affect countries in sub-Saharan Africa. By studying different countries with fixed or floating exchange rates, the researchers found that floating exchange rate countries tend to have negative economic responses to monetary policy shocks, while fixed exchange rate countries have mixed responses. For floating exchange rate countries, reducing reliance on international capital could be helpful, while fixed exchange rate countries may benefit from using capital controls.