Professor Mohammed Hadrat Yusif of KNUST has challenged Ghana’s central bank to replace its inflation-targeting regime with Nominal GDP targeting, arguing the current approach has failed to ensure macroeconomic stability.
In his inaugural lecture, the economist revealed Ghana’s inflation (22.5%) now dwarfs comparable rates in South Korea and Malaysia (below 2.5%), while public debt has ballooned to 90% of GDP – evidence he says demands policy innovation.
The proposed Nominal GDP model would prioritize both price stability and economic growth, allowing temporary inflation flexibility during downturns to stimulate recovery.
Professor Yusif particularly emphasized the need for stronger research partnerships between the Bank of Ghana and academic institutions to develop evidence-based solutions, citing Norway and Sweden as models for fiscal transparency and disciplined economic management.
