MACROECONOMIC FLUCTUATIONS IN SUB-SAHARAN AFRICA

The sources of macroeconomic fluctuations in sub-Saharan Africa are ex amined by comparing the CFA franc countries with the non-CFA franc cou ntries. External shocks, especially terms of trade shocks, appear to h ave a greater influence on fluctuations of output and the real exchang e rate in CFA franc countries. This result does not appear to be assoc iated with differences in the economic structure but may reflect the f ixed exchange rate regime, which does not (partially) buffer these cou ntries from external shocks. Macroeconomic fluctuations in non-CFA fra nc countries are similar to those in other developing countries, parti cularly in Latin America.