Reserve Bank vindicated
The critics are wrong; the Bank is no ‘inflation nutter’
11 July 2019 - 05:00
Critics have been pushing hard for the Reserve Bank’s mandate to be broadened to make it consider growth and employment concerns directly, not just inflation. But according to new ground-breaking research, the Bank already does so.
The Bank is a flexible, forward-looking inflation targeter that gives considerable attention to labour market conditions when deciding the path of interest rates, according to an empirical study undertaken by Laurence Harris, a professor of economics in the School of Finance & Management at SOAS, University of London, and former National Treasury economist Shannon Bold...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.