Jump to ContentJump to Main Navigation
Monetary Policy in Sub-Saharan Africa$
Users without a subscription are not able to see the full content.

Andrew Berg and Rafael Portillo

Print publication date: 2018

Print ISBN-13: 9780198785811

Published to Oxford Scholarship Online: April 2018

DOI: 10.1093/oso/9780198785811.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (www.oxfordscholarship.com). (c) Copyright Oxford University Press, 2019. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 15 November 2019

Inflation Forecast Targeting in a Low-Income Country

Inflation Forecast Targeting in a Low-Income Country

The Case of Ghana

Chapter:
(p.398) Chapter 19 Inflation Forecast Targeting in a Low-Income Country
Source:
Monetary Policy in Sub-Saharan Africa
Author(s):

Ali Alichi

Marshall Mills

Douglas Laxton

Hans Weisfeld

Publisher:
Oxford University Press
DOI:10.1093/oso/9780198785811.003.0019

A model in which monetary policy pursues fully fledged inflation targeting is adapted to Ghana. Model features include: endogenous policy credibility; non-linearities in the inflation process; and a policy loss function that aims to minimize the variability of output and the interest rate, as well as deviations of inflation from the long-term low-inflation target. The optimal approach from initial high inflation to the ultimate target is gradual; and transitional inflation-reduction objectives are flexible. Over time, as policy earns credibility, expectations of inflation converge towards the long-run target, the output-inflation variability trade-off improves, and optimal policy responses to shocks moderate.

Keywords:   Monetary policy, disinflation, semi-structural models, Ghana, inflation-targeting, inflation forecasting, low-income countries, developing countries, credibility, transparency

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .