THE INFLATION-GROWTH RELATIONSHIP IN SSA INFLATION-TARGETING COUNTRIES Cover Image

THE INFLATION-GROWTH RELATIONSHIP IN SSA INFLATION-TARGETING COUNTRIES
THE INFLATION-GROWTH RELATIONSHIP IN SSA INFLATION-TARGETING COUNTRIES

Author(s): Nomahlubi Mavikela, Simba Mhaka, Andrew Phiri
Subject(s): Economy, Supranational / Global Economy, Business Economy / Management, Micro-Economics, Financial Markets
Published by: Studia Universitatis Babes-Bolyai
Keywords: Inflation; Economic Growth; quantile regression; Inflation targeting; South Africa; Ghana; Sub-Saharan Africa (SSA);

Summary/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.

  • Issue Year: 64/2019
  • Issue No: 2
  • Page Range: 84-102
  • Page Count: 19
  • Language: English
Toggle Accessibility Mode