Title page for ETD etd-07152012-164320


Document Type Master's Dissertation
Author Mashele, Jeoffrey Godfrey
URN etd-07152012-164320
Document Title Appropriateness of inflation targeting in South Africa
Degree MBA
Department Gordon Institute of Business Science
Supervisor
Advisor Name Title
Dr J Rossouw Supervisor
Keywords
  • price stability
  • inflation
  • inflation targeting
  • Phillips curve
  • exchange rate
  • transmission mechanism
Date 2012-03-08
Availability unrestricted
Abstract
The appropriateness of inflation targeting in South Africa is examined. South Africa has adopted flexible inflation targeting, wherein considerations for other macroeconomic variables are prioritized. There is evidence of growing concern regarding South Africa’s monetary policy framework., emerging primarily from the trade union movement and the communist party. The concerns are borne out of the developmental challenges that are still facing South Africa, ranging from high unemployment, high levels of poverty and inequality, and low economic growth.

In attempt to understand these concerns, the following key economic variables GDP, Manufacturing Data, Exchange Rate, and Repo Rate were investigated using both Eviews and Stat tool. To eliminate the impact of the recent global recession, the data that has been analyzed is up to 2008. The research compares two periods, namely; the pre inflation targeting period (1990 – 1999) and post inflation targeting period (2000 – 2008).

The study has found that despite unemployment, inequality and economic growth having being sluggish over the years, these factors are not as a result of inflation targeting. Evidence indicates that inflation has been reduced and stabilized since the adoption of inflation targeting. This research argues that this methodology is important for South Africa’s economic development, as evident by increased output. This research concludes that the implementation of inflation targeting is appropriate for South Africa.

© 2011, University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria.

Please cite as follows:

Mashele, JG 2011, South Africa as a strategic operations destination for, MBA dissertation, University of Pretoria, Pretoria, viewed yymmdd < http://upetd.up.ac.za/thesis/available/etd-07152012-164320/ >

F/12/4/699/zw

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