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Degree of price rigidity in LICs and implication for monetary policy

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  • ALIDOU, Sahawal

Abstract

Using semi-aggregate data on price and a methodology based on dummy indicator, we assess price rigidity in Ghana and discuss its implications for monetary policy. Price features in Ghana are compared to that of South Africa which is a similar country both in terms of economic structure and monetary policy framework. Our results suggest higher price rigidity in South Africa than in Ghana. Therefore, the same monetary policy is likely to have ceteris paribus, more real effects in South Africa and more nominal effects in Ghana.

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  • ALIDOU, Sahawal, 2014. "Degree of price rigidity in LICs and implication for monetary policy," MPRA Paper 59844, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:59844
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    References listed on IDEAS

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    2. Bayat , Saeid & Ebrahimi , Sajad & Ghaderi , Omid, 2017. "The Effects of Exchange Rate on Price-Setting in Manufacturing Sector: Applying Price Micro Data of Iran," Journal of Money and Economy, Monetary and Banking Research Institute, Central Bank of the Islamic Republic of Iran, vol. 12(1), pages 1-21, January.

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    More about this item

    Keywords

    Price rigidity; monetary policy; frequency of price changes;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

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