Exchange Pass-Through in Ghana
17 Pages Posted: 10 Apr 2010
Date Written: April 7, 2010
The paper examines the effect of exchange rate changes on consumer prices in Ghana using vector autoregression (VAR) models. Using a data set covering the period 1990M01-2009M02, we find that the exchange rate pass-through to inflation is ‘incomplete’ and decreasing in Ghana. Our empirical results indicate a low but significant pass-through in the short run.
We argue that the findings reflect the impact of increased openness and tighter monetary policy pursue by the central bank over the period.
Keywords: Pass-through, Exchange rate, Inflation, Impulse response
JEL Classification: C32, E31, E 41, O55
Suggested Citation: Suggested Citation