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008			240318b |||||||| |||| 00| 0 eng d
040			_aMSU _bEnglish _cMSU _erda
050			_aHC800 JOU
100	1		_aO'Connell, Stephen A. _eauthor
245	1	0	_aTowards a rule-based approach to monetary policy evaluation in Sub-Saharan Africa _cby Stephen A. O'Connell
264	1		_aOxford : _bOxford University Press, _c2011
336			_2rdacontent _atext _btxt
337			_2rdamedia _aunmediated _bn
338			_2rdacarrier _avolume _bnc
440			_vVolume 20, number 2
520			_aI review the three-equation AS/IS/MP model that is at the core of the dynamic stochastic general equilibrium (DSGE) models in use within central banks in the industrial countries. Monetary policy (MP) rules play a central role in these models, and alternative rules can be compared in terms of their implications for the economy's dynamic adjustment to shocks. I discuss the advantages of DSGE modelling in low-income countries and show how interest-rate rules can be adapted to reflect the balance-sheet instruments widely used among African countries. I also identify features of the African economic environment that are poorly captured by existing models, including a large and volatile food sector, imperfect capital mobility and a credit channel for monetary policy. To illustrate the DSGE approach, I develop a model in which food supply shocks play a key role in inflation dynamics. I show that private storage can generate serial correlation of food price inflation when food price shocks are serially uncorrelated.
650			_aMonetary policy _zSub-sahara Africa
856			_u10.1093/jae/ejq024
942			_2lcc _cJA
999			_c164387 _d164387