Affordable Access

A tale of two Cedis: Making sense of a new currency in Ghana

  • Education


Ghana (West Africa) underwent a currency change in July 2007. This paper explores the adaptation to the New Ghana Cedi one year post-redenomination using the theoretical framework of the Money Illusion Effect and the relearning-rescaling hypotheses. Study 1 revealed that the old and new currencies appeared to be valued similarly, based on the ratings of gains and losses in the old and new currencies. This result is consistent with the slogan of the Ghanaian redenomination public education campaign and suggests that people can be inoculated against the Money Illusion Effect through education. In study 2, attributes of the new currency were rated more positively than those of the old currency, suggesting a preference for the New Ghana Cedi.

There are no comments yet on this publication. Be the first to share your thoughts.


Seen <100 times

More articles like this

A tale of two Cedis: Making sense of a new currenc...

on Journal of Economic Psychology Jan 01, 2010

A tale of two senses.

on Neuron July 1995

Making sense of two-sided altruism

on Journal of Monetary Economics Jan 01, 1987
More articles like this..