INFLATION HAS COME DOWN Does it matter?
These days, people talk about inflation a lot. If they are not talking about inflation, they are talking about rate of inflation. And in recent years, the records show that inflation has been coming down. But, should all that be of interest to anybody? The answer is yes; it should be of interest to all of us.
BORROWING MONEY �.and paying interest
It would have been a wonderful idea if we didn�t have to pay interest on the money we borrow. I am sure every borrower would love that.
That is to say, you go to somebody or to the bank to borrow twenty million cedis to do business. After (say) five years, you keep all the profit you would have made, take the twenty million cedis to the person or the bank and say, �Here is your twenty million cedis. Thank you very much.�
GDP GROWTH AND PEOPLE�S DAILY BREAD The economists call it gross domestic product (or GDP). In simple language, it is the final value of the goods and services produced in a country in any given year. Thus, if roads are constructed so that people have improved access to transportation services, it adds to our GDP.
GHANA BEGINS CREDIT REPORTING Giving money to people, with the expectation that they will pay back the money with interest is an old business. It can be good business, but it is also a very risky business.
The banks and other lending institutions understand these matters quite well. They have listened to many nice stories from people who wanted to borrow from them. Some of those borrowers have been given the money and have paid back subsequently. Others have been given the money and have since been playing hide-and-seek with the banks.
