Analysis of the effectiveness of monetary policy instruments in the fight against inflation in the Democratic Republic of Congo[Analyse de l'efficacité des instruments de la politique monétaire dans la lutte contre l'inflation en République Démocratique du Congo]

Our study focused on analyzing the effectiveness of monetary policy instruments used in the Democratic Republic of Congo (DRC) from 1987 to 2018. The objective was to examine the impact of these instruments on the effectiveness of the Central Bank of Congo (BCC) monetary policy in combating inflation during this period. To achieve this objective, we employed statistical and econometric methods, including correlation, causality, and VAR modeling. The results show that inflation (INFL) is positively correlated with the deposit rate (TD) and the exchange rate (TXRO), and weakly negatively correlated with the money supply rate (TMM). Our analysis reveals that a positive shock to TD has no immediate effect on inflation but becomes negative in the second period, then positive from the third to the ninth period, and stabilizes from the tenth period onward. Similarly, a positive shock to TXRO has no immediate effect, becomes negative in the second period, then positive from the third to the seventh period, and stabilizes from the tenth period onward. A positive shock to TMM has an immediate negative effect, then becomes positive in the third period, negative in the fourth period, and stabilizes from the seventh period onward. In summary, our analyses indicate that the monetary policy instruments used to reduce inflation were not effective throughout the study period in the DRC.