De Wet, W.A. (Walter Albert)2007-12-122007-12-122003-12De 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]0038-228010.1111/j.1813-6982.2003.tb00096.xhttp://hdl.handle.net/2263/4085This 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.143454 bytesapplication/pdfenBlackwell. The definitive version is available at www.blackwell-synergy.comCentral bankingInflation targetingSouth African Reserve Bank (SARB)Monetary policyBanks and banking, Central -- South AfricaInflation (Finance) -- South AfricaPostprint Article