Publications Archive – Monographs

achieving durable price and exchange rate stability in ghana_ is a currency board the answer_ (monograph).pdf

Ghana has a long history of price and exchange rate instability, reflecting the underlying structural defects of the economy, in terms of a lack of diversification and overdependence on imports, compounded by the absence of durable fiscal and monetary discipline. Addressing the structural defects will take time, and, therefore, strengthening monetary and fiscal management is seen as important in stemming the perennial price and exchange rate instability, as many of Ghana’s peers have been able to do. A currency board imposes discipline on monetary and fiscal management and, thereby, ensures price and exchange rate stability. As such, there have been growing calls for Ghana to adopt such a system. This paper assesses the suitability of a currency board for Ghana. It notes that while the currency board can deliver the needed macroeconomic stability, it has notable limitations, including loss of monetary policy independence and flexibility to influence the economy; loss of exchange rate flexibility to respond to shocks and as a competitiveness tool; lack of lender of last resort function, which may be needed in financial crisis situations; and lack of fiscal agency function as a backup for potential fiscal shocks. For the foregoing reasons, the paper did not consider a full-blown currency board to be currently suitable for Ghana. Rather, it proposed a “currency board-lite” system, comprising stringent monetary and fiscal rules backed by a strong enforcement and oversight regime.

Dr. John Kwakye

12 Jun 2024

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the 17 steps to and out of financial crises in ghana lessons for the future.pdf

Historically, Ghana has had its fair share of financial crises with evolving natures and causes. For 17 times since independence, the country has faced financial challenges that have led to financial bailouts from the International Monetary Fund (IMF). The nature of these financial crises, the IMF solutions applied to them, and their implications for future recurrences have not been carefully addressed. Hence, the main objective of this study is to gain new insights into the risk factors and causes of the 17 financial crises in Ghana and recommend some permanent solutions. From the analyses, it can be concluded that worsening fiscal deficits and the external sector represented by sharp decline in international reserves, predate the occurrence of most of the early financial crises in Ghana (1966 to 1983). The financial crises during the 1980s and 1990s were responses to a mix of external (increasing external debts and global economic shocks) factors and internal macroeconomic factors. Within the first decade of the fourth republic.........

5 Oct 2023

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agreeing to disagree in the interest of ghana (iea monograph no.23).pdf

This paper on the topic “Agreeing to Disagree in the Interest of Ghana” was delivered as part of a two day seminar on the theme: "The Survival of Multiparty Democracy and Politics of Accommodation". The paper offers a stark picture of the true reality of Ghana's political environment today. This disturbing picture was softened with practical, workable and sound alternatives for addressing the challenges that we face as a nation.

Dr. Lydia Apori Nkansah

24 Jun 2020

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monograph-9_what has been the impact of foreign direct investment in ghana.pdf

In this paper, the author, Dr John Asafu-Adjaye, addresses two important issues. The first is to empirically determine the nature and extent of the impact of FDI on Ghana's economic growth over the period 1970-2003. In doing this, he uncovers the determinants of economic growth and measures their relative impact using econometric techniques. He then goes on to discuss the second issue of what Ghana can do to attract more FDIs. While discussing this issue he introduces some new and refreshing ideas on how to accelerate the pace of Ghana's economic development.

26 May 2020

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Monograph 6 - The Social Security and National Insurance Trust - is there the need for reforms.pdf