The Economy Must Be Stabilized To Reduce Inflation- Dr. Isaac Yamoah To Gov’t

Posted on by Kwaku

A governance expert, Dr. Isaac Yamoah, has urged that the Government must stabilize the economy in order to reduce the country’s inflation rate.

Dr. Yamoah advised that the government must pay critical attention to certain things including allocative functions of the government, distribution function, the stabilization and to know how to balance the economy with politics.

In a phone interview on Movement In The Morning Show on Wontumi Radio/ Movement TV, he stated that ”when you’re distributing the allocated budgets, you must use the constitutionally mandated system for the distribution. You must stabilize the economy to reduce inflation once you begin to realize that things are not going as expected, you should set it a trap and once it falls prey you get to tie it up so that it doesn’t rise anymore.”

Stressing that ”if the rate of inflation in the economy goes beyond a rate that is uncontrollable, the government has to intervene with policies to help stabilize the economy. Since inflation is the result of too much expenditure on the economy, the policies are created to restrict the growth of money.”

The significant increases in prices of transport and food pushed Ghana’s inflation rate to hit 31.7 percent in the month of July 2022.

This represents a 1.9 percentage point increase over the 29.8 percent rate recorded in June 2022.

This was captured in the Consumer Price Index (CPI) data released by the Ghana Statistical Service (GSS) on Wednesday, August 10, 2022.