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
Related Articles
- EP ID EP2392
- DOI -
- Views 616
- Downloads 78
MICRO CREDIT AND PROMOTION OF SMALL AND MEDIUM ENTERPRISES IN INFORMAL SECTOR OF GHANA: LESSONS FROM EXPERIENCE
SMEs in developing countries play significant role in the economic activities of those nations. SMEs provide income for many low income households especially in the informal sector. Notwithstanding their contributions...
MICROECONOMIC GASOLINE CONSUMPTION ANOMALIES IN MEXICO: 1997-2007
Economic expansion in Mexico has caused fuel consumption to increase. Because Mexico does not have sufficient refinery capacity, over 40 percent of total gasoline consumed is imported. This has implications for the bal...
DYNAMICS OF URBANIZATION AND TEMPERATURE INCREASE IN MIDDLE EAST-AN EMPIRICAL INVESTIGATION
Growth patterns are the important channels, through which the society and economy interact. Climate change could lead to such disruption, if unsystematic growth has not been controlled to a limit. Recent scientific evide...
THE RELATIONSHIP BETWEEN BLOCK HOLDERS AND FIRM DIVIDEND POLICY
Block holders have significant impacts on the firm’s policies, especially strategies regarding the payout policy. The purpose of this study is to investigate the relationship between ownership structure and firm dividend...
ECONOMIC SANCTIONS, SPECULATIVE ATTACKS AND CURRENCY CRISIS
In this study, the effects of economic sanctions and speculative attacks on creating currency crisis have been investigated in Iranian economy during recent years. Economic sanctions can lead to currency crisis through t...