Relevance of Financial Markets for Exchange Rate Modeling in Ghana
AbstractThis paper employs the cointegration and Vector Error Correction (VEC) methodology to explore exchange rate modeling in Ghana, by considering the interactions between the goods and capital assets market, using monthly data spanning from January 1997 to December 2007. The empirical evidence supports a long-run relationship between prices, interest rates and exchange rates in which the signs are consistent with the joint validity of the unrestricted Purchasing Power Parity (PPP) and Uncovered Interest Parity (UIP) conditions. Further, Likelihood Ratio (LR) tests based on the cointegration vector show that the strict forms of the PPP and UIP conditions between Ghana and the USA do not hold as stationary relations. The findings suggest that the interactions between the goods and capital assets market matter for the conduct of monetary policy and exchange rate modeling in Ghana.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by IUP Publications in its journal The IUP Journal of Financial Economics.
Volume (Year): VII (2009)
Issue (Month): 3 & 4 (September & December)
Contact details of provider:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Hina, Hafsa & Qayyum, Abdul, 2013. "Estimation of Keynesian Exchange Rate Model of Pakistan by Considering Critical Events and Multiple Cointegrating Vectors," MPRA Paper 52611, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (G R K Murty).
If references are entirely missing, you can add them using this form.