What is the appropriate Monetary Policy regime for The Gambia?
|Author:||Mgr. Musukuta Komma|
|Year:||2014 - summer|
|Leaders:|| doc. Mgr. Tomáš Holub Ph.D.
|Work type:|| Masters
|Awards and prizes:|
|Abstract:||The study relies on a comprehensive classification of de facto behaviour, gathered by the IMF and available literatures for the Gambia to assess the fulfillment of the OCA criteria and initial conditions of inflation targeting. We found out that the
country does not satisfy most conditions to enter into
a common currency. Also, our reviews
indicate that central bank independence in Gambia has been mainly hindered by fiscal dominance through financing of
budget deficits as a lender of last resort. However, we conclude based on the current situation of the macroeconomic
fundamentals in the country that inflation targeting is the appropriate monetary policy regime for the Gambia