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26.07.2020 Opinion

The Mid-Year Budget Statement Has Clearly Revealed The Weak Fundamentals Of The Nation's Economy.

By Eric Adjei
The Mid-Year Budget Statement Has Clearly Revealed The Weak Fundamentals Of The Nation's Economy.
LISTEN JUL 26, 2020

Eric Adjei writes...

Ghana is experiencing a huge spike in the public debt stock, the cedi is depreciating against major currencies, inflation is rising sharply, among other things.

The Government of Ghana needs to understand that the above are mainly the effects of incompetence and not the pandemic.

When broad money is left to expand rapidly beyond external reserves as a result of excessive borrowing by the government from the central bank, it eventually results in exchange rate depreciation and inflation.

As Economics Nobel laureate Milton Friedman once declared inflation is always and everywhere a monetary phenomenon.

Furthermore, macroprudential tools and strategies are nation-specific. Advanced countries cutting rates at the moment does not signify that Ghana should follow suit.

It is high time the government puts in place adequate policies because as it stands, poverty will worsen in years to come.

#RescueMission

#GodblessGhana

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