A former Deputy Minister of Finance George Kweku Ricketts Hagan has expressed worry over what he says was the textbook approach government is adopting to the management of the economy.
The Cape Coast South MP said the solutions being proffered to the current challenges of the economy by government are a clear sign that government had misdiagnosed the problems of the economy.
Government has left the management of rising inflation in the hands of the Bank of Ghana.
The Ernest Addison led Central Bank has resorted to relative astronomical increases in the policy rate to 19 percent in an attempt to tackle the 27.6 percent inflation.
George Kweku Ricketts Hagan however says the approach by the government is a misdiagnosis of the situation.
He told Sena Nombo on the Gold Morning Conversation the policy rate approach would only create new challenges for the economy as the problem was supply driven not demand driven.
The former deputy Finance Minister said government should be worried as the major contributor to the rising inflation is food because government’s Planting for Food and Jobs was intended to solve to ensure the availability of affordable food across the country.
Source: Radiogoldlive.com
