US-based Ghanaian Assistant Professor of Economics, Dr. Dennis Nsafoah, has strongly advocated for the Bank of Ghana (BoG) to maintain its singular focus on price stability, arguing against expanding its mandate to include employment generation. Speaking from Niagara University, where he teaches, Dr. Nsafoah stated this week that central banks achieve peak effectiveness when their objectives are clear, focused, and directly align with their available policy tools.
Dr. Nsafoah articulated that core monetary policy instruments, such as interest rate adjustments and liquidity management, are primarily designed and most effective for controlling inflation expectations and stabilizing the general price level over the long term. He contended that these tools are less suited for fostering sustained, long-term employment growth.
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