The Monetary Policy Transmission Mechanism and Inflation Control in Ghana
Author: Mustapha Ibn Boamah
Publisher:
Published: 2009
Total Pages:
ISBN-13:
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Monetary Policy Transmission in Ghana
Author: Arto Kovanen
Publisher:
Published: 2011-11-01
Total Pages: 146
ISBN-13:
DOWNLOAD EBOOKThis paper analyzes interest rate pass-through in Ghana. Time series and bank-specific data are utilized to highlight linkages between policy, wholesale market, and retail market interest rates. Our analysis shows that responses to changes in the policy interest rate are gradual in the wholesale market. Prolonged deviation in the interbank interest rate from the prime rate illustrate the challenges the Bank of Ghana faces when targeting a short-term money market interest rate. Asymmetries in the wholesale market adjustment possibly relate to monetary policy signaling, weak policy credibility, and liquidity management. In the retail market, pass-through to deposit and lending interest rates is protracted and incomplete.1
Monetary Policy Transmission in Emerging Markets and Developing Economies
Author: Mr.Luis Brandao-Marques
Publisher: International Monetary Fund
Published: 2020-02-21
Total Pages: 54
ISBN-13: 1513529730
DOWNLOAD EBOOKCentral banks in emerging and developing economies (EMDEs) have been modernizing their monetary policy frameworks, often moving toward inflation targeting (IT). However, questions regarding the strength of monetary policy transmission from interest rates to inflation and output have often stalled progress. We conduct a novel empirical analysis using Jordà’s (2005) approach for 40 EMDEs to shed a light on monetary transmission in these countries. We find that interest rate hikes reduce output growth and inflation, once we explicitly account for the behavior of the exchange rate. Having a modern monetary policy framework—adopting IT and independent and transparent central banks—matters more for monetary transmission than financial development.
Monetary Transmission Mechanism and Monetary Policy in Ghana
Author: Alasana Njie-Ma
Publisher:
Published: 2018
Total Pages:
ISBN-13:
DOWNLOAD EBOOKQuarterly Projection Model for the Bank of Ghana
Author: Philip Abradu-Otoo
Publisher: International Monetary Fund
Published: 2022-09-02
Total Pages: 39
ISBN-13:
DOWNLOAD EBOOKThe paper describes the Quarterly Projection Model (QPM) that underlies the Bank of Ghana Forecasting and Policy Analysis System (FPAS). The New Keynesian semi-structural model incorporates the main features of the Ghanaian economy, transmission channels and policy framework, including an inflation targeting central bank and aggregate demand effects of fiscal policy. The shock propagation mechanisms embedded in the calibrated QPM demonstrate its theoretical consistency, while out-of-sample forecasting accuracy validates its empirical robustness. Another important part of the QPM is endogenous policy credibility, which may aggravate policy trade-offs in the model and make it more realistic for developing economies. Historical track record of real time policy analysis and medium-term forecasting conducted with the QPM – as a component of the broader FPAS analytical organization – establishes its critical role in supporting the Bank’s forward-looking monetary policy framework.
Evolving Monetary Policy Frameworks in Low-Income and Other Developing Countries
Author: International Monetary Fund
Publisher: International Monetary Fund
Published: 2015-10-23
Total Pages: 74
ISBN-13: 1498344062
DOWNLOAD EBOOKOver the past two decades, many low- and lower-middle income countries (LLMICs) have improved control over fiscal policy, liberalized and deepened financial markets, and stabilized inflation at moderate levels. Monetary policy frameworks that have helped achieve these ends are being challenged by continued financial development and increased exposure to global capital markets. Many policymakers aspire to move beyond the basics of stability to implement monetary policy frameworks that better anchor inflation and promote macroeconomic stability and growth. Many of these LLMICs are thus considering and implementing improvements to their monetary policy frameworks. The recent successes of some LLMICs and the experiences of emerging and advanced economies, both early in their policy modernization process and following the global financial crisis, are valuable in identifying desirable features of such frameworks. This paper draws on those lessons to provide guidance on key elements of effective monetary policy frameworks for LLMICs.
The Role of Energy Price Shocks in the Transmission of Monetary Policy in an Inflation Targeting Country
Author: Simon Kwadzogah Harvey
Publisher:
Published: 2022
Total Pages: 0
ISBN-13: 9789966612144
DOWNLOAD EBOOKDoes Monetary Policy Action Have Significant Impact on the Real Economy? A Critical Look at the Aggregate Demand Function for Ghana
Author: Nana Kwame Akosah
Publisher:
Published: 2020
Total Pages: 0
ISBN-13:
DOWNLOAD EBOOKThis paper examines the impact of monetary policy on real economic activities using a modified open-economy New Keynesian aggregate demand function for Ghana over the period 2000Q1-2016Q4. Our analysis shows that all the determinants of aggregate demand have the expected theoretical signs. We observed that tighter monetary policy dampens economic activities in Ghana, as the elasticity of domestic output gap to changes in real monetary condition index - which is a combination of real exchange rate and interest rate gaps - were all negative and significant. The results also show that lag and lead domestic output gap, foreign output gap and structural fiscal gap have positive impact on current output gap. In particular, the weight of real exchange rate in the output gap equation appears to outweigh that of real interest rate and lagged output gap in the case of Ghana. This accentuates the relevance of real exchange rate in Ghana's monetary policy transmission mechanism.
Prices and Monetary Policy in Ghana: A Case of Two Policy Instruments
Author: Nana Quaicoe
Publisher: LAP Lambert Academic Publishing
Published: 2014-10-10
Total Pages: 92
ISBN-13: 9783659592522
DOWNLOAD EBOOKThe primary objective of this study involves evaluating the link between monetary policy, price levels, and the bilateral real exchange rate in Ghana by delineating between different monetary policy instruments. Using monthly data from 1992-2013, a Vector Error Correction Model (VECM) is developed for exploring and measuring the relationship between monetary policy, inflation rate, and the bilateral real exchange rate in Ghana. The growth of broad money supply (M2) and the Monetary Policy Rate are used as the principal monetary policy instruments. Changes in the world commodity price index acts as an exogenous supply shock. Using this framework enables the comparison of existing literature to current research and assists in determining which monetary policy tool is more influential in general price stabilization in Ghana. Results suggest that both financial market quantities and financial market prices have an effect on inflation and real exchange rate in Ghana. However, the Monetary Policy Rate has a larger impact on macroeconomic variables than the growth of money supply. Supply shocks were found to have minimal effects on general prices in Ghana.
