Does Money Matter for Inflation in Ghana?

Author/Editor:

Arto Kovanen

Publication Date:

November 1, 2011

Electronic Access:

Free Full text (PDF file size is 926 KB).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:

English

Publication Date:

November 1, 2011

ISBN/ISSN:

9781463925291/1018-5941

Stock No:

WPIEA2011274

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

23

Please address any questions about this title to publications@imf.org