According to US-based Assistant Professor of Economics at Niagara University, Dennis Nsafoah, a reserve objective closer to the International Monetary Fund’s estimated adequacy level of six months, perhaps with an additional prudential margin, would still provide Ghana with substantial protection against external shocks while freeing significant resources for productive domestic investment.
More can be paid into the old-age pension depot than is necessary for the subsidy. In retirement, the tax rates are then low - but sometimes they are paid dearly.
