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.
Recommended Citation
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. Springer.
The definitive version is available at https://doi.org/10.1007/s11079-009-9142-8
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.
Publication Date
01 Feb 2010
