Importance of Monetary Policy in Côte d’Ivoire’s Economic Growth

Studies analyzing the link between monetary policy and the growth of real production in WAEMU and particularly in Côte d'Ivoire are still very rare. This study analyzes the relationship between monetary policy and economic growth in Côte d'Ivoire. The data come from the World Bank and the BCEAO and cover the period 1980-2012. The ARDL approach and the Toda-Yamamoto causality test are used. The interest rate has a negative and significant influence on economic growth in Côte d'Ivoire, while inflation and the money supply ratio have a positive and significant effect. In addition, there is a two-way causality between these indicators and economic growth in Côte d'Ivoire. It is necessary to monitor the evolution of the fundamental macroeconomic variables of the Ivorian economy simultaneously and this within the overall framework of WAEMU.