ECONOMY UPDATE: And who says the recent inflationary trends are - TopicsExpress

ECONOMY UPDATE: And who says the recent inflationary trends are attributable to the redenomination of the cedi in 2007? Yes they may be a latent psychological pricing effect, but I’d argue the recent inflationary trends have more to do with government’s misguided economic policies that have resulted in high fiscal imbalances (both budget deficit and current accounts), effects of utilities and petroleum hikes, depreciation of the cedi, and our structurally weak productive capacity hinged on excessive imports. These are the fundamental causal issues and not a point event which happened almost 7 years ago. Besides, I am yet to cite any empirical economics/finance paper which gives credence to this hypothesis being bandied by some senior economists in our policy circles. #Economics101

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