摘要：Inflation and inflation uncertainty are critical factors influencing the functioning of markets and
thus the efficient flow of economic activities. In this study, we investigated the effects of inflation
and inflation uncertainty on growth in Ghana. Unlike the majority of the previous studies, we distinguished
the short-run effects of inflation and inflation uncertainty on growth from the long-run
effects. Also, unlike the previous studies, we examined whether increases in inflation uncertainty
have the same effects on growth as decreases in it. By applying linear and nonlinear specifications
to a data set covering the period 1963 to 2015, we found that inflation has both short and long-run
negative effects on growth. Inflation uncertainty has a differential short-run effect and a negative
long-run effect on growth. Increases in inflation uncertainty hurt growth, while decreases may reverse
this pattern, albeit slowly. Both inflation and inflation uncertainty are critical determinants of
growth in the country. To promote growth, policymakers should continue to pursue a low inflation
target while ensuring minimal inflation uncertainty.
