Thinking like a governor : central banking under an inflation target

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Authors

De Wet, W.A. (Walter Albert)

Journal Title

Journal ISSN

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Publisher

Blackwell

Abstract

This paper sets out a framework in which a central bank under an inflation-targeting regime operates, and justifies why the interest rate hikes were necessary given the present framework of the South African Reserve Bank. The paper is presented as follows. Section 1 makes some observations on the literature and empirical evidence from monetary policy. It identifies and discusses four important observations from the literature on inflation targeting. Section 2 discusses the South African situation in the framework sketched in section 1, while section 3 makes concluding comments.

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Keywords

Central banking, Inflation targeting, South African Reserve Bank (SARB), Monetary policy

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Citation

De Wet, WA 2003, ‘Thinking like a governor : central banking under an inflation target’, South African Journal of Economics, vol. 71, no. 4, pp. 792–805. [http://www.blackwellpublishing.com/journal.asp?ref=0038-2280&site=1]