Theoretical and Applied Economics
No. 3 / 2025 (644), Autumn
Climate-driven monetary policy: a new Keynesian DSGE analysis for Ghana
Université de Kara, Togo
Mikémina PILO
Université de Kara, Togo
Kounagbè Odilon Boris LOKONON
Université de Parakou, Benin
Abstract. The objective of this research is to analyze the impact of climate change on Ghana monetary policy. To that end, World Development Indicators (WDI) and the Bank of Ghana (BoG) data are used within a New Keynesian Dynamic Stochastic General Equilibrium (NK-DSGE) framework. The results show that rising temperatures increase inflation (0.081-0.083), and reduce output (0.569-5.583%). The BoG may respond by raising the interest rates (0.448- 0.459%) to curb inflation, but growth effects vary with climate shock intensity. Findings stress the need for climate change considerations in monetary policy to balance price stability, growth and for adaptation financing.
Contents
Development and implementation of an Activity-Based Costing (ABC) model in private Higher Education Institutions (HEI)
Capital, coal, and change: modelling India's energy substitutability with a translog production framework
Unemployment in Ghana: analyzing the asymmetric effects of export processing zones in dealing with the problem
A PRISMA-based systematic literature review on the mismatches between the Romanian higher education system and the labor market needs
Transition effect from deposit and policy interest rates to credit interest rates in Türkiye: detecting asymmetry
The effect of fiscal decentralization and monetary policy on economic resilience in Indonesia: a panel data
The implications of demographic changes on economic performance – a comparative analysis of RO vs EU 27
Pensions under pressure: economic and demographic drivers of Romania’s public retirement system
Productivity shocks, exchange rate and migration: a new open economy macroeconomics approach
Energy vulnerabilities among Europeans in the Ukrainian war context
Empirical analysis of the relationship between FDI and economic growth in Morocco
Climate-driven monetary policy: a new Keynesian DSGE analysis for Ghana
Monitoring the implementation of the Sustainable Development Goals in Romania
Insurance and sustainable structural transformation: Does renewable energy matter?
Natural resources and the price of freedom. A concise analysis of Ukraine’s natural resources and who wins more from their direct exploitation?
Assessing the macroeconomic impact of fiscal deficit in India: evidence from ARDL approach
Non-linearity and market behavior in the Romanian capital market: a rescaled range analysis of BET index
From adversity to triumph: Türkiye's economic resilience and adaptation strategies amidst disasters
Trust at first reply and how AI-language systems alter human trust calibration
The economic value of data. From data to decisions in the public sector