IDEAS home Printed from https://ideas.repec.org/a/afe/journl/v1y1992i2p108-134.html
   My bibliography  Save this article

Devaluation and Inflation with Parallel Markets: An Application to Ghana

Author

Listed:
  • Ajay Chhibber

    (The World Bank)

  • Nemat Shafik

    (The World Bank)

Abstract

A common concern in reform programs is the potential inflationary effects of the combination of devaluation, trade liberalization, subsidy reduction, and price decontrol This issue is critical in Africa, where inflation has accelerated in several countries, particularly those undergoing adjustments. In Ghana, which has carried out one of the most thorough structural adjustment programs in Africa, an increasingly high inflation rate has been attributed to major devaluations of the official exchange rate. This paper disputes this conclusion based on careful testing and simulations using a macroeconomic model estimated with Ghanaian data.

Suggested Citation

  • Ajay Chhibber & Nemat Shafik, 1992. "Devaluation and Inflation with Parallel Markets: An Application to Ghana," Journal of African Development, African Finance and Economic Association (AFEA), vol. 1(1), pages 108-134.
    • Handle: RePEc:afe:journl:v:1:y:1992:i:2:p:108-134
    as

    Download full text from publisher

    File URL: http://www.afeawpapers.org/RePEc/afe/afe-journl/wp-content/uploads/2014/07/JAD_vol1_N1_Chp6.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Perekunah. B. Eregha, 2022. "Asymmetric response of cpi inflation to exchange rates in oil-dependent developing economy: the case of Nigeria," Economic Change and Restructuring, Springer, vol. 55(2), pages 1091-1108, May.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:afe:journl:v:1:y:1992:i:2:p:108-134. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Christian Nsiah (email available below). General contact details of provider: https://edirc.repec.org/data/afeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.