What effect does the Monetary Policy of Ghana have on the country’s GDP growth? From 1980 to 2015, a retrospective time series analysis
Journal Title: Journal of Economics, Finance and Management Studies - Year 2022, Vol 5, Issue 03
Abstract
Using data for the annual period series from 1980 to 2015, this article explores the impact of the Bank of Ghana's monetary policy and whether it has a major impact on Ghana's economic growth. The study used the Ordinary Least Square (OLS) retrieval line model, and the retrospective analysis was done using the SPSS statistical software with F-Statistic and T Statistic. GDP was a model-dependent variable in this study, while income, interest rate, and inflation were independent / descriptive variables. The findings showed that at 5% significant level, both interest rates and income were statistically insignificant, whiles inflation was statistically significant at 5% level, in that, a 1% increase in inflation resulted in a 6.9% drop in GDP. The impact of inflation on GDP has been negative. Fisher (1993), Ghosh and Philips (1998), and Neil (1999) are examples of similar verified investigations (2000). The corrected R2 value of 0.365 clearly reveals that the Bank of Ghana's overall banking policy contributed roughly 36.5 percent to economic growth, whereas other unnamed factors accounted for a large difference in GDP of 65.5 percent. As a result, my policy advice is that the Ghanaian central bank employ suitable monetary policy tools to better control inflation and decrease it to a single digit, as well as pay attention to details in other real economic sector indicators to raise the rate of growth. Information on the Bank of Ghana's (BOG) overall financial strategy on policies that contribute to economic stability, Same should be made available to the Ministry of Finance and Economic Planning (MOFEP) and industry stakeholders.
Authors and Affiliations
Dr. Patrick K Ansah
Keywords
Related Articles
- EP ID EP706941
- DOI 10.47191/jefms/v5-i3-10
- Views 162
- Downloads 0
Empowering Communities to Reduce Dependence on Unlicensed Mining and Minimize Corporate Losses: A Case Study of PTBA in December 2023
This study aims to analyze the impact of community empowerment programs on reducing dependence on unlicensed mining and to measure the potential losses incurred by PTBA due to these activities. The time sample used in th...
Factors Affecting Tax Morale: A Systematic Literature Review
The purpose of this study is to conduct a systematic review of factors that may affect tax morale. The researcher conducted a systematic search on reputable electronic data from 2010 to 2024 resulting in 24 studies selec...
How Does GVCS Participation Influence Manufacturing Productivity? The Case of China
The theoretical and empirical studies argue ambiguous effects of GVCs participation of developing countries on productivity. By using panel data of 15 Chinese manufacturing industries over the 2005-2014 period, we find t...
Decoding Millenial Preferences for M-Health App Features: Strategic Insights for Marketers
Utilizing user satisfaction as a mediating variable, this study attempts to investigate how the Unified Theory of Acceptance and Use of Technology (UTAUT) model affects millennial generation preferences for utilizing mob...
Impact and Viability of Gastronomic Ventures in Manzanillo, México: Situational Analysis in the Post Covid-19 Era
One of the alternatives that are available to people in a situation of economic crisis are gastronomic ventures. The economic environment plays a fundamental role for the success of this type of company, so it is necessa...