Fiscal institutions for an East African monetary union
The Protocol for the Establishment of the East African Monetary Union was ratified by the Heads of State of Kenya, Uganda, Tanzania, Rwanda and Burundi in November 2013. As partner states embark on the implementation of the Protocol, the Secretariat of the East African Community (EAC) has asked IGC-Tanzania to advise on the design of specific fiscal institutions to support the implementation of the Protocol.
In responding to the Secretariat's request, this project discusses the fundamental macroeconomics of monetary union and their implications for the design of the fiscal architecture for monetary union in East Africa. In doing so, the research team highlights some of the weaknesses in the design and operation of the Eurozone, the only direct contemporary comparator to the proposed East African Monetary Union. The paper makes recommendations on the design of subsequent and supporting the enabling of legislation.