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Adjustment with a Fixed Exchange Rate: Cameroon, Cote d'Ivoire, and Senegal

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  • Devarajan, Shantayanan
  • de Melo, Jaime
Abstract
Like most developing countries, Cameroon, Côte d'Ivoire, and Senegal were subjected to the external shocks of commodity booms and oil price hikes in the 1970s. As members of the Communauté Financière Africaine (CFA) (a monetary union with France), however, these countries could not devalue their nominal exchange rate to adjust to the macroeconomic imbalances that followed. The purpose of this article is to interpret the adjustment experiences of these three countries in light of this and other institutional constraints.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Devarajan, Shantayanan & de Melo, Jaime, 1987. "Adjustment with a Fixed Exchange Rate: Cameroon, Cote d'Ivoire, and Senegal," The World Bank Economic Review, World Bank, vol. 1(3), pages 447-487, May.
    • Handle: RePEc:oup:wbecrv:v:1:y:1987:i:3:p:447-87
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    JEL classification:

    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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