The Inflation-Growth Relationship in SSA Inflation-Targeting Countries

Mavikela Nomahlubi, Simbarashe Mhaka and Andrew Phiri
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Mavikela Nomahlubi: Nelson Mandela University, South Africa

Studia Universitatis Babeș-Bolyai Oeconomica, 2019, vol. 64, issue 2, 84-102

Abstract: This paper investigates the relationship between inflation and economic growth for South Africa and Ghana using quarterly empirical data collected from 2001 to 2016 applied to the quantile regression method. For our full sample estimates we find that inflation is positively related with growth in Ghana at high inflation levels whilst inflation in South Africa exerts its least adverse effects at high inflation levels. However, when particularly focusing on the post-crisis period, we find inflation exerts negative effects at all levels of inflation for both countries with inflation having its least adverse effects at high levels for Ghana and at moderate levels for South Arica. Based on these findings bear important implications for inflation targeting frameworks adopted by Central Banks in both countries.

Keywords: Inflation; Economic Growth; quantile regression; Inflation targeting; South Africa; Ghana; Sub-Saharan Africa (SSA) (search for similar items in EconPapers)
JEL-codes: C32 C51 E31 E52 O40 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (6)

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https://doi.org/10.2478/subboec-2019-0011 (text/html)

Related works:
Working Paper: The inflation-growth relationship in SSA inflation targeting countries (2018)
Working Paper: The inflation-growth relationship in SSA inflation targeting countries (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:subboe:v:64:y:2019:i:2:p:84-102:n:6

DOI: 10.2478/subboec-2019-0011

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