Doves, Hawks or Pigeons? Characterising Monetary Policy Regime Switches in Ghana

William Godfred Cantah and Ferdinand Ahiakpor ()
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Ferdinand Ahiakpor: University of Cape Coast

The African Finance Journal, 2017, vol. 19, issue 2, 47-57

Abstract: This study examines the conduct of monetary policy in Ghana since the adoption of Inflation Targeting (IT) policy framework, by estimating a policy rule that may switch overtime depending on the objective of Bank of Ghana. Using a Markov Switching model, the study found evidence that the Bank of Ghana, since the adoption of the IT framework, mostly pursued an accommodating monetary policy (Doves) and at best paid equal attention to both price stability and growth objective (Pigeons). The results imply that the Bank of Ghana has not paid enough attention to price stability since it adopted the IT framework.

Keywords: Monetary Policy; Markov Switching; Inflation Targeting (search for similar items in EconPapers)
JEL-codes: E31 E50 E52 (search for similar items in EconPapers)
Date: 2017
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