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/ 14 June 2005

Capital’s gain is labour’s loss

The health of an economy is measured by its profitability. This is true for any economy in which the private sector dominates. Declining profitability leads to a drop in investment and, hence, lower employment. When considering what drives growth and unemployment in the long run, we need to look at the evolution of profits and capital accumulation.

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/ 21 March 2005

Manuel and Mboweni’s tension

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.