Exchange Rate Pass-Through in Ghana

Siaw Frimpong, Anokye Mohammed Adam
2010 International Business Research  
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.
doi:10.5539/ibr.v3n2p186 fatcat:6syqhkqpxbfdvizb64ot5k7dem