The African Financial Review July-August 2014 | Página 10

BANKING
Banking crises and inflation dynamics in
the West Africa monetary zone
By Adegoke I. Adeleke and Joseph O. Ogebe

This paper examines the impact of banking crises on inflation in West Africa Monetary Zone (WAMZ)
from 1970 to 2012. It adopts the modified monetarist theory of inflation that is based on dynamic panel
estimation technique to analyze the dynamics of inflation and banking crises. The paper indicates that
banking crises increases the rate of inflation in WAMZ. The study concludes that incessant banking
crises can thwart the effectiveness of monetary policy and the achievement of single central bank
and thus common currency among member states in WAMZ.

10 | The African Financial Review