<abstract xmlns="http://www.w3.org/1999/xhtml"><p>This paper investigates the relationship between inflation and economic growth for South Africa and Ghana using quarterly empirical data collected from 2001 to 2016 applied to the quantile regression method. For our full sample estimates we find that inflation is positively related with growth in Ghana at high inflation levels whilst inflation in South Africa exerts its least adverse effects at high inflation levels. However, when particularly focusing on the post-crisis period, we find inflation exerts negative effects at all levels of inflation for both countries with inflation having its least adverse effects at high levels for Ghana and at moderate levels for South Arica. Based on these findings bear important implications for inflation targeting frameworks adopted by Central Banks in both countries.</p></abstract>

This paper investigates the relationship between inflation and economic growth for South Africa and Ghana using quarterly empirical data collected from 2001 to 2016 applied to the quantile regression method. For our full sample estimates we find that inflation is positively related with growth in Ghana at high inflation levels whilst inflation in South Africa exerts its least adverse effects at high inflation levels. However, when particularly focusing on the post-crisis period, we find inflation exerts negative effects at all levels of inflation for both countries with inflation having its least adverse effects at high levels for Ghana and at moderate levels for South Arica. Based on these findings bear important implications for inflation targeting frameworks adopted by Central Banks in both countries.

The Inflation-Growth Relationship in SSA Inflation-Targeting Countries

Studia Universitatis Babes-Bolyai Oeconomica

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

{"article-title":"The Inflation-Growth Relationship in SSA Inflation-Targeting Countries"}

This paper investigates the relationship between inflation and economic growth for South Africa and Ghana using quarterly empirical data collected from 2001 to...

The Inflation-Growth Relationship in SSA Inflation-Targeting Countries

Published Online: Sep 09, 2019

Page range: 84 - 102

DOI: https://doi.org/10.2478/subboec-2019-0011

Keywords
Inflation, Economic Growth, quantile regression, Inflation targeting, South Africa, Ghana, Sub-Saharan Africa (SSA)

© 2019 Nomahlubi Mavikela et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

The Inflation-Growth Relationship in SSA Inflation-Targeting Countries

Published Online: Sep 09, 2019

Page range: 84 - 102

DOI: https://doi.org/10.2478/subboec-2019-0011

KeywordsInflation, Economic Growth, quantile regression, Inflation targeting, South Africa, Ghana, Sub-Saharan Africa (SSA)

© 2019 Nomahlubi Mavikela et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
Inflation, Economic Growth, quantile regression, Inflation targeting, South Africa, Ghana, Sub-Saharan Africa (SSA)