Impact of Inflation on Economic Growth on the Ghanaian Economy in Entrepreneurial Perspective

This research investigates the impact of inflation on economic growth within the Ghanaian economy, a subject of ongoing debate among economists and policymakers. Eradication of purchasing power together with misdirected investment decisions has been noted by both Fischer and Mishkin as complex issues when examining macroeconomic goals for developing nations along with price stability and GDP growth promotion. A small amount of inflation may boost economic production and demand according to the authors but excessive inflation creates investment barriers and limits long-term development. The annual consumer inflation in Ghana rose to 23.8% during December 2024 based on data from Trading Economics which sparked economic worry. World Bank statistics indicate that this research seeks to guide policymakers through their development of monetary tools and fiscal instruments which sustain price stability and enduring economic expansion within Ghana. Studies about how inflation affects GDP expansion in Ghana show contradictory information. general inflation rates seem to foster GDP growth by motivating producers to boost production for increasing profits. Research findings show that high inflation generates negative effects on GDP expansion. The research studies show discovered co-integration between economic growth and macroeconomic factors alongside inflation in Ghana. The study discovered that inflation reduces Ghana’s economic growth since it requires powerful monetary policy intervention to address this issue. The discrepant research findings show that additional studies are needed to understand the particular effects that inflation has on Ghana’s economic expansion. The research used time series data spanning 2000–2018 while applying vector autoregressive (VAR) models for its analysis. Statistical analysis of the study showed that general inflation and low inflation levels foster GDP expansion yet high inflation rates together with government expenditure act as growth inhibitors (WJARR, 2021). The complex findings demand careful policy decisions which take into account both Ghana’s inflation situation and economic framework.