"What should the Reserve Bank do if the exchange rate, as determined by the markets, moves away from what it considers to be a competitive level? This question comes to mind when one looks at two Monetary Policy Committee (MPC) statements made two years apart."
South Africa’s socio-economic problems require systematic interventions by the government, but the policy of an independent Reserve Bank has come to dominate the macroeconomic landscape. Increasing tensions between its tough inflation targets and the growth targets of the National Treasury have worrying implications for the pace of development.