The purpose of the study is to investigate the asymmetric effect of inflation on financial development (FD).
For the econometrics estimations, the study employed the non-linear autoregressive and distributed lag (NARDL) approach. Time series data from 1980 to 2022 on Ghana was employed.
According to the findings, inflation is found to have a negative effect on the development of the financial sector. On the contrary, we found that the effect of inflation on the development of the financial sector is not symmetric.
The novelty of the study is that we investigated the asymmetric effects of inflation on the development of the financial sector. In addition, we employed a composite index to measure FD, and this assists in capturing different segments of FD.
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-05-2024-0429.
