(University of the Witwatersrand, Joahnnesburg, 2025) Willcox, Owen
This policy brief argues against lowering of the inflation target. A lower inflation target will worsen South Africa’s fiscal dynamics, leading to deeper and longer fiscal austerity, which will result in lower economic growth and employment. The arguments of the South African Reserve Bank (SARB) for a lower target are cogent but ignore the impact on government debt, and hence the negative impact on the macroeconomy at large.
In the latter half of the 20th century, notable progress was made globally in addressing poverty and hunger, with significant reductions in poverty in large parts of the world. However, alongside these achievements came a rapid growth in inequalities of income and wealth within countries, alongside the persistence of inequalities in race and gender, among others.
