A Model for Monetary Policy Analysis for Sub-Saharan Africa
We develop a small open economy DSGE model usable for monetary policy in Sub-Saharan Africa. In this paper we apply the model to quarterly data from Ghana from 1981–2007. We find that permanent, but not transitory, technology shocks are the most important source of fluctuations. We find that the estimated monetary policy rule suggests that policy is aimed almost exclusively at fluctuations in output and ignores inflation, imports and exports. A negative result is that there appears to be significant issues in identifying some important parameters.
Houssa, R., Otrok, C., & Puslenghea, R. (2010). A Model for Monetary Policy Analysis for Sub-Saharan Africa. Open Economies Review, 21(1), pp. 127-145.
The definitive version is available at https://doi.org/10.1007/s11079-009-9142-8
Keywords and Phrases
DSGE; Bayesian; Monetary policy
International Standard Serial Number (ISSN)
Article - Journal
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