Oil Discovery and Macroeconomic Management : The Recent Ghanaian Experience
This paper analyses the evolution of fiscal and monetary variables in Ghana, from the discovery of oil in 2007 through to 2014. It documents the deterioration of fiscal and monetary discipline over this period, which resulted in a rebound of debt,...
| Main Authors: | , |
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/388941507034520272/Oil-discovery-and-macroeconomic-management-the-recent-Ghanaian-experience http://hdl.handle.net/10986/28454 |
| Summary: | This paper analyses the evolution of
fiscal and monetary variables in Ghana, from the discovery
of oil in 2007 through to 2014. It documents the
deterioration of fiscal and monetary discipline over this
period, which resulted in a rebound of debt, a deterioration
of the external balance, and a decrease in public
investment. The paper goes on to analyse the potential
causes of this deterioration, including the political
economy context, and the fiscal and monetary institutional
framework. The suggested causes include the politics of
Ghana's dominant two-party system. Finally, the paper
discusses what Ghana could have done differently to avoid
the various damaging effects associated with the oil
discovery. It does not aim to provide specific fiscal policy
recommendations for Ghana, but rather to give an empirical
account of Ghana's experience that may be useful for
other countries that discover oil. |
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