Exchange rate depreciation in Ghana leads to price increases, impacting inflation.
The article examines how changes in exchange rates affect prices in Ghana. Researchers used data from 2006 to 2017 and a statistical method called Vector Autoregression. They found that exchange rate changes do impact prices in Ghana, but not completely. The main cause of inflation in Ghana is an increase in the money supply. To lower inflation, policies should focus on stabilizing the exchange rate and interest rates.