Ghana's Central Bank Struggles to Tame Inflation, Misses Targets Consistently
The Bank of Ghana's policy responses to inflation were analyzed using the Taylor rule. The study found that the Bank of Ghana reacts differently to inflation levels above and below 16.4%, accommodating higher inflation rather than targeting it. This raises questions about the effectiveness of the current inflation targets in Ghana. The study suggests that achieving sustainable inflation targets may be challenging given the country's economic structure and historical inflation rates.