AES 2023 - Opening Remarks / Session 1: Challenges of Monetary Policy

September 22, 2023

 Opening Remarks Karim El Aynaoui, Executive President, Policy Center for the New South

Session 1: Challenges of Monetary Policy: Navigating Inflation Dynamics in the Face of Supply Shocks

The confluence of COVID-19 pandemic and the ongoing Russia-Ukraine conflict has resulted in a surge of inflation not seen for decades. Developing countries, especially in Africa, are bearing the brunt of this complex economic landscape, characterized by a sluggish recovery, rising unemployment and poverty rates, tight international financing conditions, soaring public debt, and persistent inflationary pressures. Central banks in Africa are facing the challenge of balancing the need to support economic growth with the need to prevent inflation from spiraling out of control. This session will explore the complex and interrelated issues surrounding monetary policy in Africa and the strategies that central banks can employ to navigate inflation dynamics in the face of supply shocks. As such, this session will address the following questions: - How can African central banks adapt their monetary policy frameworks and tools to effectively address supply shocks? - How can African central banks effectively manage the tradeoff between inflation and growth in the current environment? - What are the potential long-term effects of the current wave of monetary policy tightening in Africa? - What policy mix frameworks could be used to address macroeconomic imbalances in African economies, and how can they be tailored to the unique characteristics of these countries?

Chair: Mehdi Bartal, Professor, Mohammed VI Polytechnic University (Morocco)

Speakers: - Abla Abdel Latif, Executive Director & Director of Research, The Egyptian Center for Economic Studies (Egypt) - Ibrahim Elbadawi, Managing Director, Economic Research Forum (Sudan) - Abebe Aemro Selassie, Director of the African Department, International Monetary Fund (Ethiopia). Online


  • May 15, 2024
    En 2023, et selon le think tank américain « Atlantic Council », 114 pays ont engagé une réflexion sur La Monnaie numérique de banque centrale (MNBC). Cette réflexion concerne la MNBC de gros, visant à repenser l’interbancarité et la MNBC de détail, celle que la Chine développe avec un succès certain depuis 2014 avec son e yuan, réservé aujourd’hui au seul marché intérieur chinois, en attendant mieux. L’objet de ce Policy Brief est, tout d’abord, de rappeler que les MNB ...
  • Authors
    Tiago C. Peixoto
    Luke Jordan
    March 20, 2024
    Based on observable facts, this policy paper explores some of the less- acknowledged yet critically important ways in which artificial intelligence (AI) may affect the public sector and its role. Our focus is on those areas where AI's influence might be understated currently, but where it has substantial implications for future government policies and actions. We identify four main areas of impact that could redefine the public sector role, require new answers from it, or both. The ...
  • February 8, 2024
    Depuis 2016, on assiste à une dynamique de création de fonds souverains africains. En 2023, on recense 21 pays et 24 fonds souverains. Sur la seule période 2016-23, celle de la deuxième vague, huit pays vont se doter d’un premier fonds souverain, et d’un deuxième, dans le cas du Maroc, en 2022. Cette étude rappelle tout d’abord l’historique d’une création qui commence, dès 1994, au Botswana, avec le Pula Fund, précisant pour chacun des 24 fonds leur date de création, leur ...
  • Authors
    Ilham Najib
    January 29, 2024
    Morocco is positioned as a new global hub of the automotive industry in an increasingly volatile international context, with various emerging countries competing intensively to gain the best returns on openness and globalization. The Moroccan automotive industry’s recent performance shows it to be the most dynamic sector in the economy: from 2014 to 2019, value-added in the automotive sector increased by almost 70% while the overall national value-added increased by only 15%. In the ...
  • Authors
    João Gabriel Sacco
    January 23, 2024
    - Brazil’s latest tax reform will replace five taxes on consumption with one single VAT to promote greater efficiency and sectoral isonomy. - Forecasts produced by a detailed ICGE model point to sizeable gains in GDP exceeding 4% in the long run, even if spatially unequal. - Exceptions to the rules reduce potential benefits in efficiency terms. - Policies meant to promote regional development and close the gap deepened by the reform partially achieve their goal at the expense of ...
  • Authors
    January 2, 2024
    This paper was originally published on The South African Institute of International Affairs (SAIIA) In order for Africa to raise living standards, create employment for youth and diversify exports, it must industrialise. Until recently, sub-Saharan African (SSA) countries made limited progress in manufacturing value addition and employment, mirroring the de-industrialisation trend seen in many developing countries. To propel industrialisation, SSA countries should adopt flexible st ...
  • Authors
    Ana Maria Bonomi Barufi
    Peter Nijkamp
    December 29, 2023
    This Paper was originally published on   This study aims to shed new empirical light on the importance of the wage curve in a developing economy. The main contribution to the empirical literature is related to the analysis being conducted at different regional levels of a developing economy. This indicates that municipal-level data seems to be more adequate for wage curve evaluation, and that spatial dependency should be considered to adequately control for ...
  • December 28, 2023
    In this episode, we interviewed Mr. Arkebe Oqubay Metiku, British Academy Global Professor, SOAS University of London around Africa's industrial policies and their impact on growth. We discussed key elements such as innovation, regional collaboration, sustainability, and intellectual pr...
  • Authors
    Inácio F. Araújo
    Fernando S. Perobelli
    December 11, 2023
    This Paper was originally published on   From a time-space perspective, we assess the effects of geographical proximity on technological convergence over time identifying proximity dimensions associated with countries’ technological similarities. We compare a time series of input-output coefficients for 66 different countries extracted from the 2021 edition of OECD Inter-Country Input-Output to verify whether nearby countries are more likely to share similar tech ...
  • November 30, 2023
    In this episode, we dive into the pressing necessity for climate initiatives in Africa. Despite its minimal global emissions, Africa grapples with severe climate challenges and a substantial funding shortfall. Yet, as obstacles persist, including the disconnect between investor expectat...