MONETARY POLICY AS A TOOL F'OR MACROECON01\11C STABll,TZATION IN GHANA
Keywords:
Monetary policy, macroeconomics, economic stabilization, econometric analysis, models, GhanaSynopsis
The efficacy of monetary policy in macroeconomic stabilization has been a matter of interest to researchers in most developing countries. This study addresses the issue in the light of the Ghanaian economy over the period 1965-1990. Using an appropriate econometric technique, a model with real output, inflation and balance of payments equations was estimated. The results of the regressions, indicated monetary variables as influential in all the equations which suggests that monetary behaviour does indeed matter in Ghana. Therefore, effective monetary policies could make significant contributions to macroeconomic stabilization in Ghana. Notable amongst the policy recommendations offered is strengthening of the financial institutions to ensure sound monetary policy implementation in Ghana •
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June 20, 2023
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