Monetary and Exchange Rate Policy for Financial Stability and Growth in MENA Countries

Daglaroglu T., DEMİREL B.

5th Istanbul Conference of Economics and Finance, İstanbul, Türkiye, 6 - 07 Haziran 2016, cilt.38, ss.378-395 identifier

  • Yayın Türü: Bildiri / Tam Metin Bildiri
  • Cilt numarası: 38
  • Doi Numarası: 10.1016/s2212-5671(16)30210-6
  • Basıldığı Şehir: İstanbul
  • Basıldığı Ülke: Türkiye
  • Sayfa Sayıları: ss.378-395
  • Gazi Üniversitesi Adresli: Evet

Özet

Using the exchange rate as a nominal anchor is very successful for taking control of inflationary expectations. The countries in the MENA region switching to a more flexible exchange rate regime will mitigate the effects of external shock. Establishing Monetary Union emerges as an alternative of flexible exchange rate and inflation targeting preference for the MENA countries. As take in to account the whole findings, we cannot mention the existence of a co-ordination between all of MENA countries in terms of inflation, growth, monetary expansion and budget performance. Therefore we can say that monetary union is an inappropriate choice of exchange for countries of the region and MENA region has not complied with OCA criteria yet. (C) 2016 The Authors. Published by Elsevier B.V.