Ghana’s monetary policy has failed to drive economic transformation, says Professor Mohammed Hadrat Yusif, a Professor of Economics at the Kwame Nkrumah University of Science and Technology (KNUST).
Delivering his inaugural lecture on the topic “Monetary Policy in Ghana: Revisiting the Tobin’s Model,” Prof. Yusif described Ghana’s economy as “trapped in a cycle of debt, underdevelopment, and poor leadership.”
He highlighted that Ghana, once at economic parity with countries like South Korea and Malaysia in the 1950s, now lags far behind, citing poor infrastructure, high inflation, and weak reserves.
“Monetary policy alone cannot save Ghana. We need fiscal discipline, innovation, and a truly independent central bank,” he said.
He blamed excessive political interference, especially from the Ministry of Finance, and called for a review of the Fiscal Responsibility Act and the Bank of Ghana Act to restore credibility.
Among his recommendations:
•Shift to Nominal GDP targeting
•Promote responsible gold and cocoa production
•Expand public-private partnerships (PPPs)
•Strengthen support for SMEs
•Invest in research and development
He also urged collaboration between the Bank of Ghana and universities to make policy research more responsive to national needs.
“Ghana must define its future—else the future will define us,” he concluded to strong applause.
The Vice-Chancellor of KNUST, Prof. Mrs. Rita Akosua Dickson was the Chairperson for the event.
