Does Money Matter for Inflation in Ghana?

Author/Editor: Arto Kovanen
Publication Date: November 01, 2011
Electronic Access: Free Full text (PDF file size is 926KB).
Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
Summary: Money has only limited information value for future inflation in Ghana over a typical monetary policy implementation horizon (four to eight quarters). On the other hand, currency depreciation and demand pressures (as measured by the output gap) are shown to be important predictors of future price changes. Inflation inertia is high and inflation expectations are largely based on backward-looking information, suggesting that inflation expectations are not well anchored and hence more is needed to strengthen the credibility of Ghana''s inflation-targeting regime.1
Series: Working Paper No. 11/274
Subject(s): Economic models | Emerging markets | Inflation targeting | Interest rates

Author's Keyword(s): Money demand | monetary policy credibility | inflation-targeting
Publication Date: November 01, 2011
ISBN/ISSN: 9781463925291/1018-5941 Format: Paper
Stock No: WPIEA2011274 Pages: 23
US$18.00 (Academic Rate:
US$18.00 )
Please address any questions about this title to