The Central Bank of Congo uses the quantitative theory of money to consider the money supply and the monetary base, respectively as intermediate and operational objectives, in order to achieve price stability. This study verifies, through an econometric approach, whether the three prerequisites relating to (i) the stability of the money demand, (ii) the controllability of the aggregates and (iii) their content in information are met. It reaches the conclusion that only the first two are met for the Congolese case and thus launches the debate on the choice of a strategy more adapted to the context.
Since December 13, 2018, the Central Bank of Congo is governed by a new law that covers its organization and operation. This law reinforces its autonomy after the law n° 005/2002 of May 07, 2002 which had already recognized the central bank independence. On the basis of a theoretical framework excavated on the external governance of central banks, this article assesses the legal independence of the Congolese Monetary Authority, retraces the itinerary and achieves, thanks to an index of dependence vis-à-vis of policy, to identify areas where efforts are still expected.
Show abstract
Full Text
