Doves, Hawks or Pigeons? Characterising Monetary Policy Regime Switches
in Ghana


William Godfred Cantah and Ferdinand Ahiakpor
University of Cape Coast


This study examines the conduct of monetary policy in Ghana since the adoption of Inflation Targeting (IT) policy framework, by estimating a policy rule that may switch overtime depending on the objective of Bank of Ghana. Using a Markov Switching model, the study found evidence that the Bank of Ghana, since the adoption of the IT framework, mostly pursued an accommodating monetary policy (Doves) and at best paid equal attention to both price stability and growth objective (Pigeons). The results imply that the Bank of Ghana has not paid enough attention to price stability since it adopted the IT framework.