Thursday, May 3, 2012

simple response to Bawumia's 'kasademics' (apologies to Kofi Wayo)

1. "You can't manage economy with propaganda ... if the macroeconomic fundamentals are weak, the exchange rate will expose you.”?

1a) This is a bizarre pedestrian comment from one we are told is a technocrat. On the contrary, any Economy anywhere can be managed with propaganda and indeed govt's all over the world use propaganda in their management. propaganda is a complimentary effort for whatever any govt does or chooses to do. So this cursory statement from the said technocrat is without substance and misleading. Dr. Bawumia might consider checking what he understands by propaganda against what exactly that word means.

1b) The exchange rate is not the only economic indicator. and different factors account for the different economic indicators. So what's the noise about 'exchange rate' about? or did Bawumiah hear govt saying anywhere that every single economic indicator is good? if govt has not said every single economic indicator is doing well then what's the point of making noise about fall in exchange rate as if that alone negates all the other indices? AND WHY WON'T BAWUMIA DARE TELL US THE PERCENTAGE FALL OF THE CEDI FROM THE TIME OF HIS REDENOMINATION TO THE TIME KUFOUR WENT OUT OF OFFICE IN 2008 AND WHAT ACCOUNTED FOR IT?

2. The graph: What was that about? A magic trick for kids? Which economic theory says that exchange rate must never increase when inflation is low or lowering? which economic theory says that exchange rate is always influenced by inflation and or gdp? Again, what was that grapth about? who can't look at data from the Statistical Service and point at it?

Where was Bawumia when during the Kufour era Forex Bureaus were told not to display their rates outside their halls because of speculation affecting the rates and this was enforced?

4a) Can Bawumia tell us how muct it cost Ghana under Kufour to do the re-denomination of the cedi which we don't know up to today?

4b) Can Bawumia tell us where the value of the old 50 cedis is and the impact the vanishing of that value has been on prices?

4c) Can Bawumia tell us how come even after redenomination even 5p coins were not accepted by the market folks and hence the increase in goods and services by leaps of 10p? can he quantify what all these lose means for price increases?

5. What alternative management strategy did he propose? None. Just mere talk of promising 'dynamic management'. what is that?



wow!! great post, well done

novisi said...

thanks boss.
the said economic guru has proven to be a joker!


sure, it's obvious. My little economics in Poly can even see that.

Kwaku Yeboah said...

Dr Bawumia has validated the old adage that it is better to shut your mouth to let people think you are a fool than to open your mouth and confirm it. Had he not done this particular lecture we would all have thought of him as a brilliant economist. Now that he has opened his mouth he has exposed that he doesn't really understand economic theory. If he does then he has exposed himself as intellectually dishonest.

Most of his pesentation was based on selective data. When it suited him he will compare previous statistical data with 2006 debased figures in order to point out unfavourably. And he would have failed miserably if had written his exchange rate theory in any O-Leve or A-level exams.