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Global Shocks Alert and Monetary Policy Responses

Author

Listed:
  • Olatunji A. Shobande

    (Business School, University of Aberdeen, UK)

  • Oladimeji T. Shodipe

    (Eastern Illinois University, USA)

  • Simplice A. Asongu

    (Yaoundé, Cameroon)

Abstract

The study examines the role of global predictors on national monetary policy formation for Kenya and Ghana within the New Keynesian DSGE framework. We developed and automatically calibrated our DSGE model using the Bayesian estimator, which made our model robust to rigorous stochastic number of subjective choices. Our simulation result indicates that global factors account for the inability of national Central Banks to predict the behaviour of macroeconomic and financial variables among these developing nations.

Suggested Citation

  • Olatunji A. Shobande & Oladimeji T. Shodipe & Simplice A. Asongu, 2019. "Global Shocks Alert and Monetary Policy Responses," Working Papers 19/066, European Xtramile Centre of African Studies (EXCAS).
    • Handle: RePEc:exs:wpaper:19/066
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    Cited by:

    1. Sedegah Kordzo & Odhiambo Nicholas M., 2021. "A Review of the Impact of External Shocks on Monetary Policy Effectiveness in Non-WAEMU Countries," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 31(3), pages 37-59, September.

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    More about this item

    Keywords

    Business Cycle; Macroeconomic policy; Financial crises;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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