Target practice: the next step in South Africa’s fight against inflation
Chris Stals broke the back of persistently high inflation in the 1990s. Now the Reserve Bank should aim for 3%, in a smaller range
27 March 2025 - 05:00
In my view, inflation is ungood™, a term I have trademarked. It has significant redistributive effects benefiting those who can protect themselves against rising prices, at the expense of those who have no protection.
Grant recipients, pensioners, depositors receiving interest from banks and others on fixed incomes are the major victims of inflation. As the real value of debt is eroded by inflation, the government is often a major beneficiary of inflation. The real value of government debt gets eroded, though the interest payments on the debt remain a major burden on the government...
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