Full Length Research Paper
Abstract
This paper examines the impact of banking crises on inflation in West Africa Monetary Zone (WAMZ) from 1970 to 2012. It adopts the modified monetarist theory of inflation that is based on dynamic panel estimation technique to analyze the dynamics of inflation and banking crises. The paper indicates that banking crises increases the rate of inflation in WAMZ. The study concludes that incessant banking crises can thwart the effectiveness of monetary policy and the achievement of single central bank and thus common currency among member states in WAMZ.
Key words: Banking crises, inflation, panel data analysis, WAMZ.
Abbreviation
JEL Classification: G01, E31, C33
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