Revisiting the inflation-hedging properties of precious metals in Africa

Peter Sephton ()

Resources Policy, 2022, vol. 77, issue C

Abstract: Recent work has suggested that precious metals can be used as inflation hedges in several African nations. A closer examination of the data suggests there is little merit to using precious metals for this purpose. While consumer prices, platinum prices, and (potentially) the exchange rate may be threshold cointegrated in Ghana, Morocco, and Tanzania, whether platinum can be used as a respite from an inflation shock depends on the regime in which the shock occurs. Independently of the degree of central bank independence and the inflation targeting regime, the search for a suitable inflation hedge in many African nations continues.

Keywords: Precious metals; Inflation; Hedging; Fractional integration; Threshold cointegration; Africa (search for similar items in EconPapers)
JEL-codes: E31 E44 G10 G11 G15 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:77:y:2022:i:c:s0301420722001830

DOI: 10.1016/j.resourpol.2022.102735

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