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Globally, central banks have supported financial markets to reduce the impact of the COVID-19 pandemic. Analyze...

Globally, central banks have supported financial markets to reduce the impact of the COVID-19 pandemic. Analyze critically what kind of support the Central Bank of Ghana should introduce (or may have introduced) on the financial market of Ghana to manage the negative impact of this pandemic.

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Expert Solution

Central Bank off Ghana should be introducing following measures in order to counter the negative effects of covid-19-

A.central bank should be trying to adopt a quantitative easing policy in order to help the economy stabilize.

B. Central Bank of the country should be trying to cut the interest rate in order to help the demand in the economy.

C. Central bank should be taking other measures like bailout packages and fiscal stimulus in order to help generation of the demand.

D. Central Bank will be trying to adopt lesser reserves ratio for the commercial bank to help them provide more of the landing and retain less of the reserves

E. Central banks should also be monitoring the economy and taking all other measures in stimulation of demand in order to negate the the possibility of an impending recession due to negative effect of covid-19.

so it can be summarised that the central bank of Ghanian economy should always be trying to to stimulate the demand into the economy in order to stabilize the business growth and generation of employment so that it does not get affected negatively much in the longer run.


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