TITLE:
A Multivariate Long-Run Money Neutrality Investigation: Empirical Evidence for CAMEU
AUTHORS:
Jean-Jacques Tony Ekomie
KEYWORDS:
Long Run Money Neutrality; CAMEU Countries; A Multivariate Methodology
JOURNAL NAME:
Modern Economy,
Vol.4 No.5,
May
31,
2013
ABSTRACT:
We examine the long run neutrality of
money, in Central Africa Monetary and Economic Union (CAMEU) economies applying
the multivariate methodology of King and Watson, using M2 and real output
during the period 1970-2008. Tests consistently reject the long run money
neutrality hypothesis. It is found that M2 has significant and positive impacts
on real output of all CAMEU countries except for Gabon. The results are robust under
other monetary aggregate variables and various sub-periods. In addition, the
estimated coefficients are stable under two breakpoints corresponding to the dates of central bank
reforms and devaluation of the local currency.