PUBLIC SECTOR WAGE AND INFLATION IN GHANA
Journal Title: Asian Economic and Financial Review - Year 2017, Vol 7, Issue 6
Abstract
Achieving price stability has been in the orbit of concern of state authorities for time immemorial. This paper, therefore, attempted to determine empirically the impact of public wage bill on inflation in Ghana for the period of 1986-2014. Using an Autoregressive Distributed Lag (ARDL) to cointegration model, it was discovered from the study that public wage bill, currency depreciation rate, money supply, and fiscal deficit all have significant impact on inflation in Ghana. The outcome of this study postulated that the rate of inflation determination in Ghana is also a fiscal phenomenon in spite of the significant and domineering role played by monetary expansion. In consequent, equal attention must be accorded both fiscal and monetary policy in the fight against the rate of inflation in Ghana for appreciable and sustained result.
Authors and Affiliations
Grace Ofori-Abebrese| Department of Economics, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana, George Kwesi Walanyo Azumah| Department of Economics, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana, Robert Becker Pickson*| College of Economics and Management, Sichuan Agricultural University, Chengdu, China
Keywords
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