MONETARY POLICY GLOBALIZATION IN ECOWAS: HOW APPROPRIATE IS INFLATION TARGETING?

MONETARY POLICY
GLOBALIZATION IN ECOWAS:
HOW APPROPRIATE IS
INFLATION TARGETING?
Okoyeuzu Chinwe
Department of Banking and Finance,
University of Nigeria, Enugu Campus.
&
Ujunwa Augustine
West African Monetary Institute
(WAMI).
&
Kalu Ebere Ume
Centre for Distance and e-Learning,
University of Nigeria, Nsukka, Nigeria.
ABSTRACT
Regional blocks are striving to globalize
their monetary policy as well as
institutionalize policies that would
mitigate the contemporaneous effects of
external policies. Regional economies
could be positively or adversely affected
contemporaneously from the contagion
effect of macroeconomic risk of member
and non-member countries through
multiple transmission mechanisms such as
trade
channel,
financial
channel,
integration of international market
channel and investment channel. These
external effects may be exacerbated or
ameliorated with the use of appropriate
monetary policy framework, which
increase economic interconnectedness,
reduce price fluctuation, promote
macroeconomic stability, and ameliorate
the spread of economic risk across
national boundaries. Studies on monetary
policy globalization are notably few. The
decision of ECOWAS Heads of States and
Governments to rethink the integration
roadmap due to COVID-19, has created an
ample opportunity to er-examine the
proposed monetary policy framework inBook of Abstract
ECOWAS. This paper contributes to theory
and policy, by re-examining the
appropriateness of inflation targeting
under globalized monetary policy in
ECOWAS.
Keywords: Inflation targeting, monetary
policy, ECOWAS, globalization.

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