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Entrepreneur and economic policy analyst Senyo K. Hosi has questioned how loss is being defined in the ongoing debate over the Bank of Ghana’s Gold-for-Reserves programme, arguing that economic policy cannot be judged using simple accounting logic.
In an article written on the subject, Hosi said the controversy surrounding the reported US$214 million loss reflects a failure to agree on what loss truly means.
“Can’t we simply agree on what a loss is?” he asked, stressing that economics is not a rigid science but one shaped by context and human behaviour.
Drawing a distinction between accounting, finance, and economic policy, Hosi explained that while accounting measures loss as total cost exceeding total revenue, economics considers opportunity cost and broader outcomes.
“An accounting loss or financial loss is not an economic loss,” he stated.
He illustrated this by noting that a venture can show profit on paper yet still represent an economic loss if it performs available alternatives he outlined.
According to him, economic policy must instead be assessed by whether it delivers intended outcomes such as stability, growth, and resilience.
“So not all loss be loss and not all profit na benefit,” Hosi concluded, urging a more honest and nuanced discussion.
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