A re-examination of the exchange rate - Interest rate differential relationship in Ghana.

This study revisits the relationship between the exchange rate and interest rate differential in Ghana with a focus on the period in which the country adopted the inflation targeting regime. Using macro-data spanning 2002 to 2019 for Ghana and the United States, we show the nonexistence of the relationship in both the short-run and long-run. Further, we show a positive but slow responsiveness of the exchange rate to interest rate differential shocks from the short-run to the medium term. The long-run results, however, shows a case of a strong and significant response of exchange rate to interest rate differential shocks. We recommend that the Bank of Ghana (BoG) addresses perennial macroeconomic instability, especially on inflation, which has been shown to fuel investment uncertainty and investment insensitivity to interest rate.

Addressing the severity and intensity of poverty in Sub-Saharan Africa: how relevant is the ICT and financial development pathway?

The study examines the effectiveness of ICT diffusion and financial development in reducing the severity and intensity of poverty in Sub-Saharan Africa (SSA). Using data from the World Development Indicators and the Global Consumption and Income Project (1980-2019), we provide evidence, robust to several specifications from the dynamic system GMM and the panel corrected standard errors estimation techniques, to show that, compared to financial access, ICT usage, and ICT access, ICT skills is remarkable in reducing both the severity and intensity of poverty. The results further revealed that, though ICT skills reduce poverty, the effect is more pronounced in the presence of enhanced financial development. Policy recommendations are provided in line with the region's green growth agenda and technological progress.