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2023 | 11 | nr 1 | 165--177
Tytuł artykułu

Has Policy Rate Been an Effective Tool in Taming Inflation? : A Sub-Saharan African Perspective.

Warianty tytułu
Języki publikacji
EN
Abstrakty
EN
This paper explores the effectiveness of monetary policy rate as a tool to tame inf lation in sub Saharan Africa (SSA) using the system GMM estimator and other econometric approaches. Financial data (unconsolidated) from Orbis for the period 2011-2018 was used for the purpose of this study. We find that expected inf lation, GDP growth rate, unemployment, the exchange rate, broad money supply, and policy rate significantly inf luence the inf lation rate in SSA. The result clearly points to the fact that targeting inf lation using monetary policy rate has not been an effective tool for taming inf lation in SSA. To the extent that the baseline result indicates the monetary policy rate has no substantial impact on inf lation in the region, there is therefore the need to re-evaluate monetary policy design that could help control inf lation. In terms of potential policy implications of this paper based on our results, policy makers or monetary authorities should not arbitrarily raise policy rate to control inf lation but should also consider other monetary policies such as money supply. The paper concludes that the credibility and accountability of the monetary policy authorities should be improved by setting targets appropriate to their institutional capacity and meeting them.(original abstract)
Rocznik
Tom
11
Numer
Strony
165--177
Opis fizyczny
Twórcy
  • Mendel University, Czech Republic
  • Mendel University, Czech Republic
Bibliografia
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Typ dokumentu
Bibliografia
Identyfikatory
Identyfikator YADDA
bwmeta1.element.ekon-element-000171665049

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