Exchange Rate Crisis among Inflation Targeting Countries in Sub-Saharan Africa

The exchange market pressure index has proven to be a major indicator in identifying rate crises economies; however, due the complexities surrounding developing economies, efficacy of been called question. Specifically, selection an appropriate and problem selecting threshold for pressure. To investigate this issue, study identifies crisis episodes South Africa Ghana using ridge regression, discrete Dynamic Ordinary Least Square (DOLS) models. results are robust resolving problems with index. They also point uneven implementation inflation targeting policy framework studied countries.