Degree of price rigidity in LICs and implication for monetary policy

ALIDOU, Sahawal (2014): Degree of price rigidity in LICs and implication for monetary policy.

Abstract

Using semi-aggregate data on price and a methodology based on dummy indicator, we assess price rigidity in Ghana and discuss its implications for monetary policy. Price features in Ghana are compared to that of South Africa which is a similar country both in terms of economic structure and monetary policy framework. Our results suggest higher price rigidity in South Africa than in Ghana. Therefore, the same monetary policy is likely to have ceteris paribus, more real effects in South Africa and more nominal effects in Ghana.

• Item Type: MPRA Paper
• Language: English
• Keywords: Price rigidity, monetary policy, frequency of price changes
• Subjects: E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E31 - Price Level ; Inflation ; Deflation; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E52 - Monetary Policy

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