Critical review of the July 2011 current monetary frameworks in COMESA and with a view to moving to inflation targeting. This Harmonize will entail undertaking a and study on the determinants and CMI, Monetary Policies Dec 2011 stability of money and Exchange demand and of the Rate Policies Study money supply Reports process, and and the relationship seminars to between monetary discuss and aggregates and make Harmonization inflation in order to and establish the October of coordination of predictability between 2012 appropriate monetary aggregate policy monetary and nominal income. actions to and exchange Monetary policy CCBG rate policies. transmission channels, policy and Regional lag effects structural Develop a phased work plan for inflation - financial targeting for the programming medium term. model in place Develop a regional Equilibrium real structural exchange Rate for member programming economies model estimated, simulated and tested for Study report forecasting capability and and December determination of short-run CMI; Monetary 2012 and long-run effects of and Exchange policy and shocks Rate Policies Undertake empirical analysis on the equilibrium Charter or Bill or level of the real exchange Protocol for the rates before the ERM is proposed TCB put in place Further econometric analysis of the nature and extent of symmetry of shocks in COMESA. Repeal the national legislation Immediate Remove of all Acts on exchange controls Fully liberalized Immediate responsible capital control capital accounts for Finance
Harmonization and coordination of monetary and exchange rate policies. Critical review of the current monetary frameworks in COMESA and with a view to moving to inflation targeting. This will entail undertaking a study on the determinants and stability of money demand and of the money supply process, and the relationship between monetary aggregates and inflation in order to establish the predictability between monetary aggregate and nominal income. Monetary policy transmission channels, policy and lag effects Develop a phased work plan for inflation targeting for the medium term. Develop a regional structural programming model estimated, simulated and tested for forecasting capability and determination of short-run and long-run effects of policy and shocks Undertake empirical analysis on the equilibrium level of the real exchange rates before the ERM is put in place Further econometric analysis of the nature and extent of symmetry of shocks in COMESA. and Policies Study Reports and seminars to discuss and make of appropriate policy actions to CCBG Regional structural - financial programming model in place Equilibrium real exchange Rate for member economies Study report and Charter or Bill or Protocol for the proposed TCB July 2011 October 2012 Dec 2011 December 2012 CMI, Monetary and Exchange Rate Policies CMI; Monetary and Exchange Rate Policies Remove of all capital control Repeal the national legislation Acts on exchange controls Fully liberalized capital accounts Immediate Immediate responsible for Finance Harmonize