Public debt and inflation: empirical evidence from Ghana

This paper investigates the impact of public debt on inflation in Ghana using annual data during period 1983–2018. The study uses Autoregressive Distributed Lag (ARDL) bounds testing approach to cointegration and an error correction model examine this linkage. cointegrating regression results reveal evidence a stable long-run relationship between explanatory variables presence structural break. findings also show positive significant inflation. These were found hold, irrespective whether was conducted short run or long run. confirms inflationary effects Ghana. government should, therefore, be prudent when considering increases minimize volatility its associated risks economy.