Cover IMF Working Papers
Does Money Matter for Inflation in Ghana?
Author: Mr. Arto Kovanen
Series:
IMF Working Papers
Volume/Issue:
Volume 2011: Issue 274
Language:
English
Publication Date:
01 Nov 2011
DOI:
https://doi.org/10.5089/9781463925291.001
ISBN:
9781463925291
ISSN:
1018-5941
Pages:
23
Keywords:
WP; monetary policy; money demand; inflation expectation; monetary policy credibility; inflation-targeting; monetary policy implementation; gap indicator; inflation-targeting arrangement; inflation objective; reaction function; Inflation; Inflation targeting; Monetary base; Demand for money; Output gap; Africa
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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Money has only limited information value for future inflation in Ghana over a typical monetary policy implementation horizon (four to eight quarters). On the other hand, currency depreciation and demand pressures (as measured by the output gap) are shown to be important predictors of future price changes. Inflation inertia is high and inflation expectations are largely based on backward-looking information, suggesting that inflation expectations are not well anchored and hence more is needed to strengthen the credibility of Ghana's inflation-targeting regime.1
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund