We analyze central bank monetary policy in an economy where the government
has control over the amount it borrows from the central bank (so the latter
is not 'independent' in the traditional sense). Data from three different
African countries are used to illustrate three different types of policy re
sponse to variations in government borrowing, and the consequences of these
differences are outlined. (C) 1999 Elsevier Science B.V. All rights reserv
ed. JEL classification: E58; O23.