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National or regional currencies and poverty reduction in Africa

Par : Contributeur(s) : Type de matériel : TexteTexteLangue : français Détails de publication : 2022. Sujet(s) : Ressources en ligne : Abrégé : Africa gives us the opportunity to analyze the consequences of the choice between a national currency and a currency common to several states. The impact of this choice on poverty reduction is the purpose of this article. Based on an econometric analysis, using the World Bank’s PovcalNet database, the article shows that the elasticity of poverty to per capita income growth, greater than unity in monetary unions (UEMOA and CEMAC), is stronger than elsewhere in Africa. In other words, in times of economic growth, this growth is more inclusive in the unions. This difference is due to lower inflation, which is characteristic of currency unions.
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Africa gives us the opportunity to analyze the consequences of the choice between a national currency and a currency common to several states. The impact of this choice on poverty reduction is the purpose of this article. Based on an econometric analysis, using the World Bank’s PovcalNet database, the article shows that the elasticity of poverty to per capita income growth, greater than unity in monetary unions (UEMOA and CEMAC), is stronger than elsewhere in Africa. In other words, in times of economic growth, this growth is more inclusive in the unions. This difference is due to lower inflation, which is characteristic of currency unions.

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