Fiscal rules in CEMAC countries worsen economic downturns, alternative policies needed
The article examines how fiscal policies in CEMAC countries are influenced by multilateral rules, finding that these policies tend to be pro-cyclical. This means that they worsen economic fluctuations. The study suggests that implementing counter-cyclical fiscal policies could help smooth out these fluctuations and reduce the impact of harmful shocks on the economy. The current convergence criteria used in the region may not be suitable for the unique characteristics of the countries in the CEMAC zone.