Real exchange rate misalignment and macroeconomic implications: recent evidence from Ghana
-
Real exchange rate misalignment and macroeconomic implications: recent evidence from Ghana
Nana Kwame Akosah, ProvIdence Boateng Mireku B and Emmanuel Owusu-AfrIyIe
Publisher: African Review of Economics and Finance
Pub: 2019-11-02 13:07:50
Email it to me(Requires login) Download this PDF file
-
We evaluate the degree of real exchange rate (REER) misalignment and its macroeconomic implications for the Ghanaian economy using quarterly data (2000Q1-2015Q3). Our results uncovered a clear misalignment of the actual REER from its equilibrium level throughout the sample period, although the REER was close to its equilibrium level at the end of 2012. The study also revealed a weak positive undervaluation-economic growth nexus for Ghana. Overvaluation was observed to exert disinflationary pressures, while undervaluation tends to increase inflationary pressures in Ghana. The study thus suggests that the use of REER undervaluation as a deliberate industrial policy instrument for sustained economic growth may be counterproductive in the context of Ghana, as such policy may potentially undermine price stability objective of the central bank.
Email it to me(Requires login) Download this PDF file
-
Email it to me(Requires login)
Download this PDF file
-
References are not ready for this file yet, please refer to reference from the PDF file
-
Keywords
Equilibrium Exchange Rate,Misalignment,Ghana
Other Informations
-
Article Statistics (Metrics)
Viewed: 3782 times
Downloads: 1265 times
-
Citations
-
Licencing
-
Keywords
Equilibrium Exchange Rate,Misalignment,Ghana