Macroeconomic Policy Development in Benin
This document outlines the economic impact of the COVID-19 pandemic in Benin. We focus on the monetary and fiscal policy implemented by the government of Benin and the Central Bank of West African States (BCEAO). We found that the government and the central bank acted rapidly to contain the spread of the virus to minimise any adverse economic consequences. Fiscal policy took the form of cash transfers and subsidies for households and firms. Monetary policy expanded liquidity through banking and microfinance institutions. A portion of liquidity was specifically allocated to the agricultural sector to ensure food security. The expansion in liquidity increased consumer prices, which increased the cost of living and could potentially increase poverty. Future fiscal policy should better target those households most impacted by the price increase.