Appreciate the Difference Between Monetary Policy & Fiscal Policy ~ Razak Kojo Opoku Writes

We don’t have to close our eyes and ears to the truth just because of pursuing a personal interest or politics(within or without).

The Minister of Finance is responsible for fiscal policy whereas the Bank of Ghana is responsible for Monetary Policy.

Fiscal Policy is action undertaken by government such as government’s revenue generation, spending decisions and tax rates.

Monetary Policy is action undertaken by Bank of Ghana (Central Bank) to control money supply, price stability, changes in policy rate, interest rates and inflation Control.

Why are you then out of ignorance calling for the head of the Finance Minister over Cedi-Dollar issues?

The Finance Minister has to ensure that allocation of resources are done to honour the budget Statements and Economic Policy of Government. It is the responsibility of the Finance Minister to provide Money for the sustainability of Government Policies. So far no Policy of Akufo-Addo’s Government has been suspended or reviewed due to non-performance of Ken Ofori-Atta. Free SHS is still running, Light is on, Factories are being established, Roads are being constructed, Salaries of Public Workers are being paid, Statutory payments are being done, Allowances are being paid, Contractors are being paid etc.

Unless maybe out of ignorance or mischief, how can you demand for resignation of such a Finance Minister who has ensure that the running of the Fiscal Policy of Akufo-Addo’s Government is on course in spite of the economic downturn?

The Finance Minister being responsible for Fiscal Policy is busy leading negotiations with the IMF so that Revenue will be made available to sustain the running of Government’s Budget and Economic Policies.

You can blame Ken Ofori-Atta for failure of Fiscal Policy but certainly not Cedi Depreciation which is a matter of Monetary Policy.

One of the major functions of Bank of Ghana is to promote by monetary measure the stabilization of the value of the currency within and outside Ghana.

The Bank of Ghana is independent of the Ministry of Finance. The Fiscal Policy led by Finance Minister has to be complemented by the Monetary Policy led by the Bank of Ghana.

Always be well informed before you attack. Ken Ofori-Atta is NOT responsible entirely for the Depreciation of the Cedi against the Dollar and other currencies.

Let’s stop the blame games and assist the Government to bring Ghana out of the prevailing economic situation.