Question

It has been predicted that post covid-19 macroeconomic indicators may be discouraging, which may lead to worsening economic conditions. Ghana therefore, should prepare for the task ahead.

Required:

a) Identify the possible tasks ahead of government as implied in this case and discuss their impact on Ghanaians.   

b) Propose practical measures necessary to mitigate such challenges

Answer 1

a)

In the wake of the pandemic, it's evident that Ghana has suffered economically including permanent job layoffs, drop in household consumption, supply chain being disrupted and ultimately leading up to a slump in the Ghanaian economy.

The tasks for the government at present are many including the rising of household consumption by reducing the pessimism in the economy. People of Ghana will be thus able to consume more and help run the economy. After this the government needs to address the issue of unemployment which is a menace in a developing country like Ghana. Reestablishing the supply chain and ensuring that factories and businesses are at a minimum loss is one of the major tasks for the Government of Ghana. By virtue of addressing these issues, the people of Ghana can experience a rise in employment and the layoffs come to a halt.

b)

The government on the counsel of central bank can propose expansionary fiscal and monetary policies which could stimulate an economic boost in Ghana. Some of the measures which can be taken are:

• Decreasing the taxes so that the people have more savings at their disposal and therefore have the intention to consume a bit more.
• Decreasing the interest rates means that the borrowers have less burden on interest thereby borrow without hesitation. This along with the previous point ensures the money supply increases in the Ghanaian economy.
• Government expenditure on infrastructure. This is vital as this promotes the creation of more jobs and restores optimism about the future of Ghana's economy.

These are some of the ways in which the Government of Ghana can address the issues in this pandemic.

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