Monetary Policy Case Study

1193 Words5 Pages
CHAPTER ONE
1.0 Introduction
1.1 BACKGROUND OF THE STUDY
According to (Federal Reserve Board, 2006) monetary policy is the process by which the monetary authorities of a country usually the (Central Bank) controls the supply and circulation of money, often targeting a rate of interest for the purpose of promoting economic growth and stability. (Khan,2010) also argued that, many developing countries have adopted exchange rate regimes with more flexibility and thereby greater scope for monetary policy because in a globalized world, there is less time to adjust to shocks and greater need to achieve closer convergence of economic performance among trading partners.
Monetary policy in Ghana has changed immensely in line with changes in financial
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Since the data is being sourced from BOG, this study on monetary policy is significant to the BOG and government because it will help know the development of banking and financial institutes in Ghana. This study also helps the country know the capital formation. Monetary policy help in capital formation by providing loan at low interest rate and increasing investment.
Monetary policy is one of the most important aspects of economics. This study is significant to the body of knowledge because it would help them know how the government of Ghana and BOG are applying monetary policy tools in the economic development of the economy. This study would also broaden the students’ knowledge on monetary policy and help them increase their development in becoming economists. The study is significant to lecturers as it would improve their knowledge on monetary system as they can make recommendations and inferrals to them during
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This study would help serve as guide to the business class in Ghana for decision making. This study is significant to these individuals because it helps them know how the BOG is controlling this variables and the effect on the Ghanaian economy. 1.6 ORGANIZATION OF THE STUDY
The work is divided into five chapters. Chapter one provides an overview and background of the study, the statement of problems, objectives of the study, research hypothesis / questions, as well as relevance of the study.
Chapter two of the work reviews relevant literature and a comparative analysis of various scholarly and expert perspectives on the subject under discussion. In this chapter authorities in the field are quoted and theories are assessed.
Chapter three presents the method of data collection and the methodology that was used in carrying out the research work. Here sources of primary and secondary data are outlined. The sampling techniques used are named; explanations are given as to why that approach was
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