By Jeremiah Nutsugah
Dr. Johnson Asiama, former Deputy Governor of the Bank of Ghana (BoG), emphasized the need for strengthened policy coordination between the Bank of Ghana and the Ministry of Finance to balance fiscal and monetary policies.
Speaking at the African Center for Governance and Economic Management (ACGEM) on August 16, 2024, on the theme “Balancing Fiscal and Monetary Policies in Africa for Economic Development: The Governance Challenge,” he stressed the importance of regular meetings between the two institutions.
“The Bank of Ghana and the Ministry of Finance should meet weekly, not just once, to inform themselves of the actions they will take,” Dr. Asiama said.
He highlighted the need for policies to support each other, as monetary policy decisions impact fiscal and financial performance.
Dr. Asiama also advocated for the revival of the Fiscal Responsibility Act, which has been suspended, and emphasized the need for an independent fiscal council.
“The fiscal council should be non-partisan and independent to anchor fiscal and monetary policies,” he said.
Additionally, Dr. Asiama recommended reforming tax policies to improve efficiency, rationalizing public expenditures, and clarifying the mandate of the fiscal council.
He also emphasized the importance of continued collaboration with international financial institutions, such as the IMF and World Bank, and engagement with stakeholders from the private sector and academia.
Dr. Asiama further advised establishing advisory panels to support policy decisions, comprising experts from academia and the private sector.
