David Ofosu-Dorte, senior partner at AB & David Africa, has criticized inflation targeting as an ineffective tool for tackling Ghana’s persistent inflationary issues.
Speaking at the 13th Ghana Economic Forum on August 8, Ofosu-Dorte expressed strong scepticism about the strategy’s applicability within the Ghanaian economic context, particularly under high-interest rate conditions.
In his address, centred on the theme “Unlocking Opportunities: Re-engineering Ghana’s Economic Model for Sustainable Development,” Ofosu-Dorte argued that inflation targeting fails to stabilize the economy when interest rates exceed 20%.
He challenged economists to prove how this approach has effectively addressed Ghana’s inflation problems.
Ofosu-Dorte highlighted a vital issue with applying anti-inflationary measures from Western economies to Ghana, noting that such strategies often overlook significant differences in economic structures and priorities.
“The biggest mistake we make is assuming that anti-inflationary measures that work in the West, through monetary policy increases, will be effective here,” he stated.
He underscored the importance of tailoring economic policies to local conditions rather than adopting foreign models.
Ofosu-Dorte emphasized that economic policies should focus on the well-being and realities of the Ghanaian population rather than relying on approaches that may not align with the country’s unique economic landscape.
“The fundamental misunderstanding is that people work because of economics, not vice versa.
We are residents with real lives and challenges,” he concluded, stressing the need for policies that reflect the actual needs and experiences of the Ghanaian people.
