Professor Hanke Blasts Bawumia For Shifting Blame About Ghana’s Economic Challenges

• Professor Steve Hanke has tweeted strong words about Ghana's economy again
• This time, he criticised vice president Dr Mahamudud Bawumia for shifting blame about the cause of Ghana's economic challenges
• He also reiterated his call for the setting up of a currency board to deal with the cedi depreciation

US-based economics professor, Steve Hanke, has called out Vice President Mahamudu Bawumia for always shifting the blame about the true cause of Ghana’s current challenges.

Prof Hanke, who regularly tweets his brief comments about economic and political happenings in countries around the world, said Monday, August 22, 2022, that Ghana's “economics wizard” has not been forthright about the cause of Ghana’s economic mess.

“When it comes to the source of Ghana’s economic problems, VP Bawumia plays the BLAME GAME. You know, it wasn’t me, it was the guy behind the tree,” he tweeted along with a news story in which Dr Bawumia blamed the Ukraine war and two other factors for the economic hardship.

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According to the Professor of Applied Economics at Johns Hopkins University in the US, Ghana’s inflation has increased by 80% since last year.

“Without a currency board, GHA is going down the tubes,” he added.

This is not the first time Prof Hanke has suggested the establishment of a currency board to actively determine the value of the cedi against trading currencies.

He tweeted last month that the central bank of Ghana has become ineffective at protecting the value of the cedi.

Steve Hanke Says Ghana's Central Bank Is Obsolete; Calls For Currency Board

YEN.com.gh reported previously that the US economics professor said the Bank of Ghana must be retired and replaced with a currency board to hold the fall of the cedi.

A currency board takes away the management of the exchange rate and money supply from a nation's central bank and institutes an extreme form of a pegged exchange rate.

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Apart from fixing the exchange rate, a currency board becomes important for maintaining reserves of the underlying foreign currency.

In a series of tweets last month, the US-based economists lamented that under President Nana Akufo-Addo, things keep getting worse.

Source: YEN.com.gh