期刊名称：International Journal of Economics and Research
电子版ISSN：2229-6158
出版年度：2013
卷号：4
期号：2
页码：13-29
出版社：Sanben Agency
摘要：Much of the debate on the policy responses undertaken with respect to the global financial crisis has largely focused on advanced economies, leaving out African economies’ perspective. The paper examines the monetary policy responses undertaken in mitigating the economic effects of the early 2008 domestic crisis and the global financial crisis that ensued. Whereas the policy interventions were initially effective in restoring confidence, lowering short term interest rates and maintaining macroeconomic stability, the expansionary monetary policy stance could not be sustained following increased inflationary pressures and unprecedented depreciation of the exchange rate. However, the sudden shift to a tight monetary policy stance partly counteracted the gains that had been achieved. Additionally, an assessment of the effectiveness of monetary policy using VAR analysis indicates weak monetary policy transmission mechanism. Policy insights include the need for a clear exit strategy particularly when adopting a major policy shift, strengthening of the monetary policy transmission mechanisms and holistic approach to addressing structural weaknesses and vulnerability of the economy to shocks.
