Business in Ghana

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Posts Tagged ‘CEPA’

State Institutions Are Not Deserving Of Our Blind Faith And Trust

Posted by Business in Ghana on June 9, 2013

Ben Ofosu–Appiah, TOKYO, JAPAN.

There is palpably a lack of faith and trust in state institutions in Ghana today because majority of Ghanaians think they are not working. Instead of these institutions doing the job they were set up to do, at worst they operate mostly against the tenets for which they were established, and at best they exist to protect the interest and needs of only a few, the powerful and the rich in the society.

Obama in a 2009 address to Ghana’s Parliament exhorted Ghanaians and Africans in general to build stronger institutions because they are the foundations upon which democratic governance depends. There is no doubt that strong, accountable, effective, independent, fair and impartial institutions that do the job they were set up to do without fear or favour are the pillars upon which democratic governance is anchored. However, if these state institutions are weak, lethargic, incompetent, and palpably corrupt, we the people lose faith in them and with it the entire democratic governance process. Read the rest of this entry »

Posted in Ben Ofosu-Appiah, Politics | Tagged: , , , , | 2 Comments »

The Relevance Of The Monetary Policy Rate In The Monetary Transmission Mechanism

Posted by Business in Ghana on August 5, 2012

Source: Center for Policy Analysis.  http://www.cepa.org

In May 2007 the Bank of Ghana formally adopted inflation targeting (IT) as the framework for stabilizing prices within the economy. Since then, significant progress has been made in developing the policy framework as well as the institutions and markets that underpin its implementation _ money and capital markets have been developed, there is a framework for forecasting liquidity, and a broad range of instruments with which to conduct monetary policy is available.

The monetary policy tool of the BOG is the monetary policy rate (MPR) _ the rate at which commercial banks can borrow from the central bank _ and it is set at a level that is consistent with meeting the BOG_s inflation target. The MPR, thus, is expected to communicate the stance of monetary policy and act as a guide for all other market interest rates. Read the rest of this entry »

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ROBUST FIRST QUARTER PERFORMANCE KEEPS ECONOMY ON GROWTH TARGET

Posted by Business in Ghana on July 13, 2012

Source: Center For Policy Analysis (CEPA), Ghana.  http://www.cepa.org

Introduction

The Ghana Statistical Service (GSS) currently provides three interrelated measures of real GDP. For any specified period of time  typically a quarter or calendar year  real GDP is the constant price (2006) value of relevant economic activities in that specified period. Constant prices are used in the valuation in order to eliminate the effect of inflation which otherwise could confuse the assessment of economic performance. The growth rate is obtained by comparing the value of the current period with that of a previous period. The three measures of data are the following:

  •  year-on-year for each of the four quarters of the calendar year, defined by GSS as comparing current economic developments with that of the same period in the previous year. There is little or no influence by seasonal factors;
  •  quarter-on-quarter for each of the four quarters in comparison with the preceding quarter defined by GSS as providing a short-term (six months) picture of current economic developments. The estimates are influenced by seasonal factors that are caused by economic behaviour or recurrent exogenous factors such as weather patterns, holidays, religious events etc ; and
  •  the current calendar year compared to the previous calendar year  the more common measure used in public discussions, as for example: the economy grew at 14.1 percent in 2011.

Moreover, all of the above measures of economic performance are subject to periodic revisions. According to the GSS, revisions provide the opportunity for incorporation of additional and improved data. For example, some data that were not available at the released date are incorporated through revisions into subsequent releases. Read the rest of this entry »

Posted in Financial Services, Uncategorized | Tagged: , , , , | 1 Comment »

Election Year Excesses, Cedi Depreciation, and Inflation The Current Experience

Posted by Business in Ghana on June 16, 2012

Source: Center for Policy Analysis, Ghana.  http://www.cepa.org.gh

Every election year in the Fourth Republic, especially the hotly contested ones, has been associated with excesses (in spending and behavior), rapid depreciation of the cedi, and accelerating inflation. The most recent to such years is election year 2000 when the excesses led to an exchange rate depreciation (number of cedis per US dollar) 0f 100 percent from 3,500 old cedis at the beginning of the year to 7,000 at the end of the year.

The next after that was election year 2008 when election year excesses led to a fall in the value of the cedi from 1.0152 cedis / dollar in June 2008 to 1.4524 cedis / dollar in June 2009  a year-on-year depreciation of about 43 percent which was halted only by the stabilization program agreed with the IMF. Read the rest of this entry »

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