The Central bank Interest Rate Reaction Function, a Smooth Transition Approach

Africa has always been a country where there has been enough economic activity to lead to some sort of economic based colonialism. There have been researches carried out which has shown that the use of gold in Africa in the early 9^thcentury has been used in order to maintain a balance in its payments (Austen, 1987). As it was a part of French colonies, there was some pride seen in the fact that Africa was part of the international markets rather than consider themselves isolated. With the use of the Franc within its borders, Africa was also able to be part of international trade and international finance. (Gomez, 1998)