Title

A Model for Monetary Policy Analysis for Sub-Saharan Africa

Abstract

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.

Department(s)

Economics

Keywords and Phrases

DSGE; Bayesian; Monetary policy

International Standard Serial Number (ISSN)

0923-7992

Document Type

Article - Journal

Document Version

Citation

File Type

text

Language(s)

English

Rights

© 2010 Springer, All rights reserved.

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