Monetary Policy Implications on Macroeconomic Performance in the Common Monetary Area: A Panel-SVAR Framework

The CMA (Common Monetary Area) is a quadrilateral monetary arrangement encompassing South Africa, Namibia, Lesotho, and Eswatini. four countries have undergone gradual improvement in regional economic integration for the effective coordination of their policymaking. Despite coordination, are still experiencing poor performance. This study traces how shock or an unanticipated change anchor country’s central bank’s policy instrument, this case, affects macroeconomic performance entire region. Employing Panel Structural Vector Autoregressive model (Panel-SVAR) annual data from 1980–2021, findings show that positive repo rate Africa significantly affected important indicators. results indicate followed by significant decline RGDP_G, decrease inflation, money supply, increase lending recommends authorities policymakers need to formulate policies toward cushioning effects country as well global shocks.