South Africa has officially unveiled the policy of inflation targeting (IT) in February 2000. By December 2001, the Governor of the Reserve Bank of South Africa, after reading the latest statistics related to the disappointing economic data. Economic activity has slowed dramatically, to the point that the country seems to be heading for a recession. The grim statistics to get the governor to consider the country pursued a policy rule. Persistently high unemployment, a legacy of the apartheid era, means that South Africa can not afford to wait for a new policy to bear fruit. With the forecast of inflation exceeds the approved target, the governor will have to tighten monetary policy further restricting investment. He doubts that it is time for South Africa to change its course. "Hide
by Francis Warnock, Archie Hungwe, Justin Drake, Mitch Debrah Source: Darden School of Business 23 pages. Publication Date: August 9, 2007. Prod. #: UV1006-PDF-ENG
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