IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/96998.html
   My bibliography  Save this paper

Monetary Policy Transparency in Ghana: Recent Evidence

Author

Listed:
  • Akosah, Nana
  • Alagidede, Paul
  • Schaling, Eric

Abstract

Monetary policy involves a dual role as central banks must not only be a heedful observer of outcomes but must also be able to shape the outcomes. In view of this, greater policy transparency has been endorsed to boost credibility, effectiveness and flexibility of monetary policy. With more than a decade of practicing of fully-fledged IT regime, it is of paramount interest to ascertain the pace of policy transparency in Ghana. Consequently, this paper determines the extent of policy transparency in Bank of Ghana, utilizing both methodologies of Dincer and Eichengreen (2008) and Al-Mashat and others (2018). The application of the two transparency measures reveals that policy transparency environment of Bank of Ghana (BOG) has indeed improved since 2009. Our score suggests that monetary policy in Ghana is 41% -57% transparent as at end 2018. The relatively moderate score for BOG emanated largely from low level of transparency about its policy framework (FPAS model) and the procedural policy processes. To further boost transparency, BOG is required to increase transparency in the documentation and publication of the Bank’s core quarterly projection model, as well as evaluating and publishing how each decision on policy instrument or target are attained. Publication of other core variables (aside inflation) in the baseline forecasts and regular external evaluation of the policy framework along with public disclosure of the findings are necessary to boost policy transparency.

Suggested Citation

  • Akosah, Nana & Alagidede, Paul & Schaling, Eric, 2019. "Monetary Policy Transparency in Ghana: Recent Evidence," MPRA Paper 96998, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:96998
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/96998/1/MPRA_paper_96998.pdf
    File Function: original version
    Download Restriction: no

    More about this item

    Keywords

    Transparency Inflation targeting Accountability Monetary Policy Ghana;

    JEL classification:

    • E0 - Macroeconomics and Monetary Economics - - General
    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • 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
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:pra:mprapa:96998. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter). General contact details of provider: http://edirc.repec.org/data/vfmunde.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.