Today in History: Thanks to Akufo-Addo, Ghana's economy is in the tank - Prof. Hanke

Professor of applied economics at the Johns Hopkins University, Steve Hanke, accused President Nana Addo Dankwa Akufo-Addo of putting Ghana's economy in a tank.

He indicated that the country's economy is currently experiencing significant difficulties due to mismanagement.

"Thanks to Pres. Akufo-Addo, #Ghana's economy is in the tank. Today, I measure Ghana's inflation at a stunning 109%/yr. Without a currency board, like the one the Gold Coast had (1913-1958), debt default is just around the corner," Prof Steve Hanke said in a tweet.

Read the full story originally published on October 24, 2022 by www.ghanaweb.com.

Steve Hanke, a professor of applied economics, Johns Hopkins University and founder and co-director of the Institute for Applied Economics, has stated that Ghana's economy is now in the tank.

According to him, the inflation in the West African country is being measured at 109 percent as of Sunday, October 22, 2022.

Prof Hanke's inflation figure contradicts that of the Ghana Statistical Service which measured the inflation for September at 37.2%.

In a tweet sighted by GhanaWeb, the economist reiterated his point that it is only a currency board that can help stabilise the depreciation of the Ghana cedi against the US dollar.

He noted that just as the then Gold Coast had a currency board between 1913 to 1958, present-day Ghana needs a currency board else debt default is just around the corner.

"Thanks to Pres. Akufo-Addo, #Ghana's economy is in the tank. Today, I measure Ghana's inflation at a stunning 109%/yr. Without a currency board, like the one the Gold Coast had (1913-1958), debt default is just around the corner," Prof Steve Hanke tweeted.

Prof Hanke's assertion that a currency board can stabilise the cedi has been reaffirmed by Dr. John Kwakye, Director of Research, Institute of Economic Affairs (IEA).

He told 3news in a report that a currency board-type monetary system can give the cedi lasting stability but warned that installing the currency board must be done progressively.

“I agree with Prof. Hanke that only a currency board-type monetary system can give the cedi lasting stability. We should, however, move progressively towards it. The full modalities can be worked out."

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