Research Fellow at the Institute of Statistical, Social and Economic Research (ISSER), Professor Charles Ackah, has called for a shift in Ghana’s economic thinking, arguing that the Bank of Ghana must play a more active role in promoting economic development beyond its focus on inflation control.
Prof. Ackah said the original mandate of the Bank of Ghana, established in 1957, was not centred solely on inflation targeting but included supporting Ghana’s economic independence and the general development of the country.
He argued that the central bank, as a key state institution, must be positioned to contribute directly to economic transformation through strategic investments and interventions that support productive sectors.
According to him, central banks in several progressive economies have adopted similar approaches by supporting private-sector development and investing in critical areas of their economies.
“Every central bank was set up to help develop the economy,” Prof. Ackah said, citing China and Malaysia as examples of countries where central banks have played more direct roles in supporting economic activity.
He noted that Malaysia’s central bank, for instance, has the capacity to lend directly to private-sector operators and invest in areas of the economy without necessarily channelling all such support through commercial banks.
Prof. Ackah maintained that there was nothing inherently wrong with a central bank making strategic investments in sectors such as infrastructure and the microeconomy, provided such interventions were properly managed.
He therefore called for a bipartisan national discussion on the role of the Bank of Ghana and the broader economic policy framework, arguing that Ghana’s approach to economic management must evolve.
“That’s why we need a bipartisan discussion on this. You see, one of the things I feel we should change is our economic thinking. The thought is wrong,” he said.
Prof. Ackah acknowledged that central banks operate under significant public and political pressure, particularly during periods of economic crisis, making it difficult for governors to pursue unconventional policies even when such measures could support economic recovery.
He said political actors and the general public often scrutinise central bank decisions through partisan lenses, which can discourage institutions from adopting policies aimed at addressing structural economic challenges.
He cited international examples to support his argument, noting that central banks in advanced economies have also undertaken interventions beyond conventional monetary policy during periods of economic difficulty.
Prof. Ackah stressed that a broader developmental role for the Bank of Ghana should not mean abandoning accountability or monetary discipline but rather finding a balance between maintaining economic stability and supporting sustainable growth.
He called for a national rethink of Ghana’s economic policy framework to ensure that monetary institutions contribute more effectively to job creation, productive investment and long-term economic transformation.
Source: Newspyramid.com
