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Title: The effectiveness of monetary policy in the COMESA-EAC-SADC region of Sub-Saharan Africa
Author: Chipungu, Gladys
ISNI:       0000 0004 9358 7217
Awarding Body: University of Birmingham
Current Institution: University of Birmingham
Date of Award: 2020
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This research investigates the effectiveness of monetary policy in 11 countries from the COMESA-EAC-SADC free trade area of the sub-Saharan Africa region. It provides a historical account on the environment upon which monetary policy operated in each country from 1995 to 2015 and examines the transmission channels of monetary policy using factor augmented vector auto-regression models. It also uses auto regressive distributed lag models to assess the size and nature of the interest rate pass through (IRPT) of the central bank’s policy rate to average lending and deposit rates in each country. The results reveal heterogeneities in the strength of the transmission channels and IRPT across the countries due to differences in macroeconomic and financial developments; and the conduct of monetary policy. Using bank level data from Malawi, the research further provides evidence of heterogeneities in IRPT across financial institutions mainly due to market power, liquidity and risk conditions; and across products on account of menu costs. The findings suggest that in different degrees, the countries need to adopt policies that would improve the effectiveness of monetary policy; and that the authorities of the COMESA-EAC-SADC need to take into account the heterogeneities across the countries when establishing the criteria for harmonisation of economic policies in the region.
Supervisor: Not available Sponsor: ESRC
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID:  DOI: Not available
Keywords: H Social Sciences (General) ; HB Economic Theory ; HC Economic History and Conditions