THE IMPACT OF INFLATION TARGETING ON UNEMPLOYMENT IN SOUTH AFRICA

Abstract

Amidst an environment characterized by stark inequality, average economic growth, structural unemployment and high levels of poverty, South Africa has adopted an inflation targeting monetary policy. Whilst some view this as a necessary prerequisite for growth, unemployment and poverty alleviation, others have condemned it as conservative and counter-productive to the economic policy goals of South Africa. This report draws conclusions from a wide range of literature together with data analysis from key expert in the field and data drawn on specific macro-economic variables between the period 2000 and 2009