South Africa had officially introduced a policy of inflation targeting (IT) in February 2000. By December 2001, the Governor of the South African Reserve Bank is worried after reading the latest statistics with the disappointing economic data. The economy had drastically slowed to the point that the country is heading for a recession appears. The grim statistics force the governor to examine whether the country had followed the correct policy. Persistently high unemployment, a le … Read more »

South Africa had officially introduced a policy of inflation targeting (IT) in February 2000. By December 2001, the Governor of the South African Reserve Bank is worried after reading the latest statistics with the disappointing economic data. The economy had drastically slowed to the point that the country is heading for a recession appears. The grim statistics force the governor to examine whether the country had followed the correct policy. Persistently high unemployment, a legacy of the apartheid era meant that South Africa can not bear the luxury of waiting for new measures fruits. With inflation forecast to exceed mandated goal, the governor would have, monetary policy, which would further restrict attract investment. He asks if it is time to change the course of South Africa.
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from
Francis Warnock,
Archie Hungwe,
Justin Drake,
Mitch Debrah
Source: Darden School of Business
23 pages.
Release Date: 09 August 2007. Prod #: UV1006-PDF-ENG
Inflation targeting in South Africa HBR case solution

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