How does a central bank react to changes in government borrowing? evidence from Africa

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 response to variations in government borrowing, and the consequences of these differences are outlined. (C) 1999 Elsevier Science B.V. All rights reserved. JEL classification: E58; O23.