Show Summary Details

Page of

PRINTED FROM OXFORD HANDBOOKS ONLINE (www.oxfordhandbooks.com). © Oxford University Press, 2018. All Rights Reserved. Under the terms of the licence agreement, an individual user may print out a PDF of a single chapter of a title in Oxford Handbooks Online for personal use (for details see Privacy Policy and Legal Notice).

date: 19 October 2019

Abstract and Keywords

This chapter reviews the history of the CFA Franc Zone, and discusses whether membership in the zone has supported economic growth and reduced the need for economic adjustment. It concludes that the zone is not an optimal currency area and that the costs of belonging to it outweigh its benefits. It then assesses the alternatives to the fixed parity rate between the CFA franc and the euro. In the zone, proponents of the fixed rate point to its ability to provide stability by linking inflation levels of African countries to that in France and Europe; while opponents of fixed parity argue that it sends incorrect signals to the domestic economies. There are a number of exchange rate arrangements that differ from the fixed parity rate by degrees of flexibility, and the appropriateness of each depends upon the economic setting in which it is used. This chapter evaluates these alternatives.

Keywords: monetary union, optimal currency area, regional integration, Africa, CFA Franc, BCEAO, BEAC, WAEMU, CAEMC, France

Access to the complete content on Oxford Handbooks Online requires a subscription or purchase. Public users are able to search the site and view the abstracts and keywords for each book and chapter without a subscription.

Please subscribe or login to access full text content.

If you have purchased a print title that contains an access token, please see the token for information about how to register your code.

For questions on access or troubleshooting, please check our FAQs, and if you can''t find the answer there, please contact us.