Template-Type: ReDIF-Article 1.0
Author-Name: Tuwe Soro Garbobiya 
Author-Email: garbobiya@yahoo.com
Author-Name: Olajide Oladipo 
Author-Email: jide.oladipo@nileuniversity.edu.ng
Author-Name: Paul Terhemba Iorember
Author-Email: piorember1990@gmail.com
Title: Financial inclusion and monetary policy targets: Evidence from the ECOWAS countries
Abstract: The study examines the impact of financial inclusion on monetary policy targets in the Economic Community of West African States for the period between 2004 and 2020. To capture how a shock to financial inclusion affects monetary policy targets in the ECOWAS sub-region, the study employs panel vector autoregression via the Generalized Method of Moments framework and uses the impulse response functions. The results show that in all ECOWAS countries, financial inclusion leads to an appreciation of the local currency, thereby improving the value of the exchange rate. However, it reduces the effectiveness of monetary policy. In particular, financial inclusion increases consumer prices and interest rates. Based on the findings, the study recommends, among others, the need for a single monetary policy in the ECOWAS sub-region to properly integrate its monetary policy framework in line with the economic and monetary integration policy of the West African Monetary Zone.
Keywords: Financial inclusion, monetary policy target, ECOWAS, monetary transmission, panel vector autoregression
Journal: Modern Finance
Pages: 84-100
Volume: 2
Issue: 1
Year: 2024
Subtitle : 
File-URL: https://mf-journal.com/article/view/107
File-Format: text/xml
Handle: RePEc:bdy:modfin:v:2:y:2024:i:1:p:84-100:id:107