Ghana’s macroeconomic crisis: Causes, consequences, and policy responses
Ghana is in the midst of a severe but not unprecedented macroeconomic crisis. This paper helps to evaluate the government’s policy options by (1) explaining the crisis’ causes, and (2) comparing it to previous macroeconomic crises and the policies that corrected them. Two large shocks are to blame f...
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| Formato: | Artículo preliminar |
| Lenguaje: | Inglés |
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International Food Policy Research Institute
2016
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| Acceso en línea: | https://hdl.handle.net/10568/147701 |
| _version_ | 1855528023686643712 |
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| author | Younger, Stephen D. |
| author_browse | Younger, Stephen D. |
| author_facet | Younger, Stephen D. |
| author_sort | Younger, Stephen D. |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Ghana is in the midst of a severe but not unprecedented macroeconomic crisis. This paper helps to evaluate the government’s policy options by (1) explaining the crisis’ causes, and (2) comparing it to previous macroeconomic crises and the policies that corrected them. Two large shocks are to blame for the crisis: an increase in the fiscal deficit of about 6 percent of GDP and a reduction in hydroelectric production that has not been replaced with thermal generation. This latter is more difficult to quantify, but may be as large as 4 percent of GDP. While large, Ghana has recovered from similar shocks in the past, and with luck, should be able to do so now. But this will require reversal of the large increases in the public sector wage bill that drove much of the fiscal shock. |
| format | Artículo preliminar |
| id | CGSpace147701 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2016 |
| publishDateRange | 2016 |
| publishDateSort | 2016 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1477012025-11-06T06:30:34Z Ghana’s macroeconomic crisis: Causes, consequences, and policy responses Younger, Stephen D. economic policies macroeconomics economic stabilization Ghana is in the midst of a severe but not unprecedented macroeconomic crisis. This paper helps to evaluate the government’s policy options by (1) explaining the crisis’ causes, and (2) comparing it to previous macroeconomic crises and the policies that corrected them. Two large shocks are to blame for the crisis: an increase in the fiscal deficit of about 6 percent of GDP and a reduction in hydroelectric production that has not been replaced with thermal generation. This latter is more difficult to quantify, but may be as large as 4 percent of GDP. While large, Ghana has recovered from similar shocks in the past, and with luck, should be able to do so now. But this will require reversal of the large increases in the public sector wage bill that drove much of the fiscal shock. 2016-01-08 2024-06-21T09:23:11Z 2024-06-21T09:23:11Z Working Paper https://hdl.handle.net/10568/147701 en https://hdl.handle.net/10568/147081 Open Access application/pdf International Food Policy Research Institute Younger, Stephen D. 2016. Ghana’s macroeconomic crisis: Causes, consequences, and policy responses. IFPRI Discussion Paper 1497. Washington, DC: International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/147701 |
| spellingShingle | economic policies macroeconomics economic stabilization Younger, Stephen D. Ghana’s macroeconomic crisis: Causes, consequences, and policy responses |
| title | Ghana’s macroeconomic crisis: Causes, consequences, and policy responses |
| title_full | Ghana’s macroeconomic crisis: Causes, consequences, and policy responses |
| title_fullStr | Ghana’s macroeconomic crisis: Causes, consequences, and policy responses |
| title_full_unstemmed | Ghana’s macroeconomic crisis: Causes, consequences, and policy responses |
| title_short | Ghana’s macroeconomic crisis: Causes, consequences, and policy responses |
| title_sort | ghana s macroeconomic crisis causes consequences and policy responses |
| topic | economic policies macroeconomics economic stabilization |
| url | https://hdl.handle.net/10568/147701 |
| work_keys_str_mv | AT youngerstephend ghanasmacroeconomiccrisiscausesconsequencesandpolicyresponses |