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The authors like to thank Peter Allum and the Bank of Ghana staff for their helpful comments. All remaining errors are authors’ responsibility.
The Ghana Statistical Services published rebased national accounts in 2010, which comprised a new base year (to 2006 from 1993) and expansion of data coverage, in particularly for services.
The decomposition implies that there are no seasonal variations in the quarterly gross domestic product data, which is a neutral assumption in the absence of better information about seasonal variations. Ghana Statistics Services started publishing quarterly GDP data in early 2011, backdating the quarterly time series to 2006.
Studies on stationarity of U.S. interest rates commonly find that nominal interest rates are mean-reverting and a shock could therefore last a long period (see, for instance, Rose (1988)). Gil-Alana (2004) provides a more recent estimates for U.S. short-term interest rates.
The marginal significance levels are as follows: “***” refers to 1 percent significance level, “**” refers to 5 percent significance level, and “*” refers to 10 percent significance level.
Please note that an increase (a decrease) in the nominal effective exchange rate points to an appreciation (depreciation).
Earlier studies on Ghana have provided mixed results regarding money demand stability (see Section II).
In recent times, a rapid money growth has been observed in the midst of falling inflation in Ghana.