University of Ghana students have seen firsthand how the Monetary Policy Committee (MPC) of the Bank of Ghana (B0G) sets the benchmark interest rate for the nation.
The students attended the 131st MPC meeting, where they learned about Ghana’s monetary policy framework, the Committee’s function, and the technical presentations that supported its discussions.
The goal of involving students in the monetary policy decision-making process, according to Dr. Johnson Pandit Asiama, Governor of the Bank of Ghana, is to help them go beyond what they learn in textbooks and better prepare them for the future.
“Monetary policy is most effective when it is understood, trusted, and supported by the public,” he said.
Dr. Asiama pointed out that although economics and the monetary policy process were covered in textbooks, the in-person experience gave students a hands-on understanding of the substantial labour that goes into rate announcements.
“Through this initiative, we seek to demystify the monetary policy process by providing students with practical exposure to the analytical work, technical discussions and communication processes that underpin the Committee’s decisions,” he stated.
The program is a component of the Bank’s first Monetary Policy Committee Educational Observership Program, which aims to improve transparency and increase public knowledge of monetary policy.
Students heard in-depth analyses of the real sector performance, financial markets, global developments, inflation trends, and macroeconomic variables that influenced the MPC’s choice.
Some participants claimed that the experience dispelled myths, such as the notion that policy rates were solely set by the governor.
One student remarked, “What we have observed shows that the decision is the result of thorough analysis, careful discussion and contributions from many experts. This is an opportunity for us to practicalise what we are learning.”
The program was praised by faculty members, including Dr. Jabir Ibrahim Mohammed, Senior Lecturer at the University of Ghana Business School, who described it as a crucial link between public policy practice and academic learning.
Another faculty member stated, “By opening aspects of that process to students, BoG is not only strengthening transparency but inspiring the next generation of economists to better understand the institution responsible for maintaining price stability and supporting the country’s economic development.”
Source: newsthemegh.com