A Small Macroeconmetric Model Of Trade And Inflation In Ghana
This paper contains an empirical investigation of the effects of trade and inflation on a conventional macroeconometric model for Ghana. First, the results corroborate the findings of the Fund that both devaluation and credit restraint are effective in addressing the balance of payment issues facing Ghana. Second, the direction and time pattern of the effects of these two policy experiments are different. Third, further depreciation of the domestic currency is unfavourable to the cause of curbing inflation in Ghana. It rather leads to price increases and is a source of fueling inflation, and could lead to a spiral of inflation through the agitation for higher wages by employees.
|Date of creation:||2004|
|Contact details of provider:|| Postal: CV4 7AL COVENTRY|
Phone: +44 (0) 2476 523202
Fax: +44 (0) 2476 523032
Web page: http://www2.warwick.ac.uk/fac/soc/economics/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Engle, Robert & Granger, Clive, 2015.
"Co-integration and error correction: Representation, estimation, and testing,"
Publishing House "SINERGIA PRESS", vol. 39(3), pages 106-135.
- Engle, Robert F & Granger, Clive W J, 1987. "Co-integration and Error Correction: Representation, Estimation, and Testing," Econometrica, Econometric Society, vol. 55(2), pages 251-276, March.
- Robert Dekle & Mahmood Pradhan, 1997. "Financial Liberalization and Money Demand in Asean Countries; Implications for Monetary Policy," IMF Working Papers 97/36, International Monetary Fund.
- Sweder van Wijnbergen, 1991.
"Fiscal Deficits, Exchange Rate Crises and Inflation,"
Review of Economic Studies,
Oxford University Press, vol. 58(1), pages 81-92.
- van Wijnbergen, Sweder, 1985. "Fiscal Deficits, Exchange Rate Crises and Inflation," CEPR Discussion Papers 87, C.E.P.R. Discussion Papers.
- Sweder van Wijnbergen, 1987. "Fiscal Deficits, Exchange Rate Crises and Inflation," NBER Working Papers 2130, National Bureau of Economic Research, Inc.
- Marwah, Kanta, 1969. "An Econometric Model of Colombia: A Prototype Devaluation View," Econometrica, Econometric Society, vol. 37(2), pages 228-251, April.
- J. J. Polak, 1957. "Monetary Analysis of Income Formation and Payments Problems," IMF Staff Papers, Palgrave Macmillan, vol. 6(1), pages 1-50, November.
- Richard C. Marston, 1983. "Stabilization Policies in Open Economies," NBER Working Papers 1117, National Bureau of Economic Research, Inc.
- Thorvaldur Gylfason & Michael Schmid, 1983. "Does Devaluation Cause Stagflation?," Canadian Journal of Economics, Canadian Economics Association, vol. 16(4), pages 641-654, November.
- Ghartey, Edward E. & Rao, U. L. G., 1990. "A short-run forecasting model of Ghana," Economic Modelling, Elsevier, vol. 7(3), pages 291-308, July.
- David Gruen & Jacqueline Dwyer, 1996.
"Are Terms of Trade Rises Inflationary?,"
Australian Economic Review,
The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 29(2), pages 211-224.
- Musila, Jacob Wanjala, 2002. "An econometric model of the Malawian economy," Economic Modelling, Elsevier, vol. 19(2), pages 295-330, March.
- Phillips, P.C.B., 1986.
"Testing for a Unit Root in Time Series Regression,"
Cahiers de recherche
8633, Universite de Montreal, Departement de sciences economiques.
- Phillips, P C B, 1987.
"Time Series Regression with a Unit Root,"
Econometric Society, vol. 55(2), pages 277-301, March.
- Tom Doan, "undated". "PPUNIT: RATS procedure to perform Phillips-Perron Unit Root test," Statistical Software Components RTS00160, Boston College Department of Economics.
- Peter C.B. Phillips & Pierre Perron, 1986. "Testing for a Unit Root in Time Series Regression," Cowles Foundation Discussion Papers 795R, Cowles Foundation for Research in Economics, Yale University, revised Sep 1987.
- Peter C.B. Phillips, 1985. "Time Series Regression with a Unit Root," Cowles Foundation Discussion Papers 740R, Cowles Foundation for Research in Economics, Yale University, revised Feb 1986.
- Lipumba, Nguyuru & Ndulu, Benno & Horton, Sue & Plourde, Andre, 1988. "A supply constrained macroeconometric model of Tanzania," Economic Modelling, Elsevier, vol. 5(4), pages 354-376, October.
- Krugman, Paul & Taylor, Lance, 1978.
"Contractionary effects of devaluation,"
Journal of International Economics,
Elsevier, vol. 8(3), pages 445-456, August.
- Connolly, Michael B & Taylor, Dean G, 1979. "Exchange Rate Changes and Neutralization: A Test of the Monetary Approach Applied to Developed and Developing Countries," Economica, London School of Economics and Political Science, vol. 46(183), pages 281-294, August.
- Jere Behrman & James A. Hanson, 1979. "The Use of Econometric Models in Developing Countries," NBER Chapters, in: Short-Term Macroeconomic Policy in Latin America, pages 1-38 National Bureau of Economic Research, Inc.
- Harvey, A C, 1980. "On Comparing Regression Models in Levels and First Differences," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 21(3), pages 707-720, October.
- Sundararajan, V., 1986. "Exchange rate versus credit policy : Analysis with a monetary model of trade and inflation in India," Journal of Development Economics, Elsevier, vol. 20(1), pages 75-105.
- Dordunoo, Cletus K., 1994. "The structure and policy implications of a macroeconomic model of Ghana," World Development, Elsevier, vol. 22(8), pages 1243-1251, August.
- Khan, Mohsin S. & Montiel, Peter & Haque, Nadeem U., 1990. "Adjustment with growth : Relating the analytical approaches of the IMF and the World Bank," Journal of Development Economics, Elsevier, vol. 32(1), pages 155-179, January.
- Van Wijnbergen, Sweder, 1986.
"Exchange rate management and stabilization policies in developing countries,"
Journal of Development Economics,
Elsevier, vol. 23(2), pages 227-247, October.
- Sweder van Wijnbergen, 1986. "Exchange Rate Management and Stabilization Policies in Developing Countries," NBER Chapters, in: Economic Adjustment and Exchange Rates in Developing Countries, pages 17-42 National Bureau of Economic Research, Inc.
- Adam, Christopher S, 1991. "Financial Innovation and the Demand for LM3 in the UK 1975-86," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 53(4), pages 401-424, November.
- David O. Cushman & Tao Zha, 1995.
"Identifying monetary policy in a small open economy under flexible exchange rates,"
FRB Atlanta Working Paper
95-7, Federal Reserve Bank of Atlanta.
- Cushman, David O. & Zha, Tao, 1997. "Identifying monetary policy in a small open economy under flexible exchange rates," Journal of Monetary Economics, Elsevier, vol. 39(3), pages 433-448, August.
- Sowa, Nii Kwaku, 1994. "Fiscal deficits, output growth and inflation targets in Ghana," World Development, Elsevier, vol. 22(8), pages 1105-1117, August.
When requesting a correction, please mention this item's handle: RePEc:wrk:warwec:696. 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: (Margaret Nash)
If references are entirely missing, you can add them using this form.