High cost of living: Proposals from BEAC's Directorate General of Finance and International Relations to CEMAC countries

The BEAC headquarters building in Yaoundé

•     The 12th issue of the magazine of the Bank of Central African States (BEAC) was recently released.
•     According to the document, it is necessary that beyond the traditional objectives, the economic policies in general and the monetary policies of        the BEAC give a relatively more accentuated importance to the financing of productive investments.
•     To do this, it is necessary to demand not only an improvement in the business climate, but also the development of the capital market.
•     More specifically, the magazine advocates short-, medium- and especially long-term measures to mitigate overheating prices.
•     Firstly, the short-term perspective, i.e. price stabilization, requires the identification of the factors that trigger inflationary pressures and those          that determine inflationary expectations.
•     Moreover, for low-income households, public authorities must mitigate the negative effects of rising prices by strengthening their purchasing            power rather than by capping prices. This can be done through government subsidies or a reduction in margins