MONETARY INTEGRATION IN AFRICA - A DELIBERATELY EUROPEAN PERSPECTIVE

Several initiatives for monetary integration in Africa at the subregio nal level have recently emerged. In terms of orthodox theory the preco nditions are not satisfied and the sequencing of these initiatives app ears at fault. Utilizing modem theories the paper examines the case fo r monetary integration, which depends on the prospects for improved ma cro stability, and surveys possible strategies. By comparison with Eur ope, African countries seeking monetary integration have the advantage that they can peg to an appropriate external anchor. External support for such a link, perhaps from the European Community, would be an eff icient and cost-effective means of promoting such initiatives.