Footnote:
In: Journal of Excellence, Leadership, & Stewardship Vol. 6 No. 2, p. 16–29, Forthcoming
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments May 23, 2017 erstellt
Description:
The study is to assess the relationships among the foreign exchange market, money market, and stock market in Ghana extending from January 2000 to March 2015, using the Autoregressive Distributed Lag framework and error correction methodology. The results indicate that there is a long-run relationship among exchange rates, interest rates, stock prices, and inflation. The foreign exchange market has a statistically significant positive long-run effect on inflation in Ghana. Interest rates and stock prices were statistically insignificant. The error correction term indicates that deviations from the long-run equilibrium relationship are corrected. According to the impulse response functions, inflation responds to its own shocks and shocks from nominal exchange rates, while the rest of the shock-response patterns not statistically significant. Also, none of the variables has significant influence on exchange rates except consumer price index that is slightly significant. The findings suggest that the exchange rate variable is determined exogenously