Ghartey, Edward, E
Author Affiliation, Ana.
Department of Economics
Monetary dynamics in Ghana: Evidence from cointegration, error correction modelling and exogeneity
Journal of development economics
Date of Publication
There exists cointegration among nominal money stock, price, real income, exchange rate, and exchange risk over the period 1970.4 to 1992.4. The error correction factor between the long-run and short-run dynamics is about 6 percent, which is slow. The price homogeneity postulate and long-run income elasticity obtain in the country. The estimated money-demand function and parameters are stable, significant, and compare favourably with other studies for other countries. Price and income are both weakly and super exogenous. Finally, M1 remains the most suitable definition of money for effecting monetary policy changes in the country.....