Abstract:
In Nel and Lekalake (2004), monetary policy transparency in South Africa
is addressed, focusing on the SA Reserve Bank's compliance with the Code
of Good Practices on Transparency in Monetary Policy (IMF, 2000) and
assessing whether the Bank has been effective in introducing transparency in
South Africa. The study also offers some recommendations on how monetary
policy transparency could be improved.
Although the study by Nel and Lekalake offers a useful insight into
monetary policy transparency based on the application of the codes of the
IMF, it is argued in this brief note that the study took neither full cognisance
of the Reserve Bank's unique ownership structure supporting monetary
policy transparency, nor of the insights gained by the Bank from past
experiences. This brief note therefore highlights the Bank's ownership
structure and then comments on certain of the recommendations made by Nel
and Lekalake.
