A NON-RECURSIVE STRUCTURAL EQUATION MODELING OF MACROECONOMIC VOLATILITY CLUSTERING IN GHANA.
Description
This data is use to models the macroeconomic problems facing Ghana using a Nonrecursive Structural Equations Model. We investigate the presence of fiscal procyclicality, and the Keynesian effect of expansive fiscal policies. We further investigate how policy rates contribute to volatilities in +cedi-dollar rates, and the effects of commodity price movements on macroeconomic volatilities, and how monetary and fiscal policies mediate those effects. We found evidence for reduced procyclicality. We also found that positive shocks to government fiscal stimulus have significant Keynesian effects on the economy. These combine evidence of reduced procyclicality and Keynesian effects of fiscal stimulus will lead to a growing significance of fiscal policy over monetary policies in any act of rebalancing the economy in the future. Furthermore, a reduction in policy rates will reduce volatilities in the cedi-dollar rates, but subject to a decrease in policy rates. the data consist of 75 variables. However, the variables values are not the raw values; they are the transformed values of the variables using the methodology in the research paper.