This study analyses various perspectives on inflation targeting as a monetary
policy framework in South Africa. The study uses semi-structured interviews
with participants who represent the perspectives of trade unions, SARB, and
academics amongst others. All the interviews were recorded on audio tape to
ensure accuracy and effective data collection. The interviews of all
participants were analyzed to establish degrees of similarities and differences
amongst them.
The study also looks at the relationship between inflation and interest rates.
The use of interest rates as a tool to curb inflation is also discussed, as is the
effect of the exchange rate on inflation. The Philips Curve Theory and the
Fisher Hypothesis provide empirical evidence to support inflation targeting.
Moreover, the perspective raised by the ANC Alliance partners were that an
inflation band of 3% - 6% is too narrow, too low and hampers economic
growth.
Then Analysis suggests a significant policy shift away from inflation targeting
after the 2009 elections, as a result of dissatisfaction from the Alliance
partners of the ruling party. The main objective of this study is to solicit
perspectives on inflation targeting from various political parties, trade unions,
businesses, the SARB and academics, as well as investigate case studies
from other countries. An underlying task of this study is to predict what South
Africans should expect from a Zuma Government with regard to monetary
policy. / Thesis (MBA)-University of KwaZulu-Natal, 2009.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:ukzn/oai:http://researchspace.ukzn.ac.za:10413/5200 |
| Date | January 2009 |
| Creators | Ndaba, Vukani Patrick. |
| Contributors | Chasomeris, M. |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis |
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