Three features of the international exchange rate data that are widely known are: (a) a high correlation between bilateral nominal and real exchange rates; (b) real exchange rate movements are highly persistent; and (c) real exchange rates are highly volatile. This paper attempts a joint, albeit partial, rationalization of these facts in an environment with no staggered contracts and where pric...

The objective of this study is to see, among ECOWAS countries, if the difference between fixed exchange rate regime WAEMU countries on one hand and flexible regimes WAMZ other hand, a factor non-convergence inflation rates. To do so, we have first applied Granger causality tests look at inflation; then used an differential model (IDM) identify factors convergence or rates WAMZ. Our results show...