Exchange Pass-Through in Ghana

17 Pages Posted: 10 Apr 2010

See all articles by Siaw Frimpong

Siaw Frimpong

University of Cape Coast - School of Business

Anokye M. Adam

University of Cape Coast - School of Business

Date Written: April 7, 2010

Abstract

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

Frimpong, Siaw and Adam, Anokye M., Exchange Pass-Through in Ghana (April 7, 2010). Available at SSRN: https://ssrn.com/abstract=1585590 or http://dx.doi.org/10.2139/ssrn.1585590

Siaw Frimpong (Contact Author)

University of Cape Coast - School of Business ( email )

Cape coast
Ghana

HOME PAGE: http://business.ucc.edu.gh/accfinance/staff/mrsiaw

Anokye M. Adam

University of Cape Coast - School of Business ( email )

Cape coast
Ghana

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