Goals and conduct of monetary policy discussed in presidential address

Posted by Johan Fourie on 2012-10-11

In his presidential address to the Economic Society of South Africa's Annual General Meeting in Johannesburg during September 2012, Professor Stan du Plessis discussed the goals and instruments of monetary policy. According to Du Plessis, an extraordinary consensus on the goals and conduct of monetary policy has been undermined by the international financial crisis and the faltering recovery in many economies. There is an evident need to pay closer attention to developments of asset markets and in the financial sector, which has opened a discussion on the appropriate goals for monetary policy. Meanwhile, central banks have employed controversial balance sheet operations to restore market stability and encourage economic recovery. He argues that both these developments reflect earlier concerns in monetary policy: prior to the modern consensus both balance sheet policies and an emphasis on financial stability were central concerns of monetary authorities and the future of monetary policy is likely to rhyme with its past. Download the Working Paper here.

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BER Weekly

22 September 2017
In the domestic section we unpack the latest decision by Monetary Policy Committee (MPC) of the South African Reserve Bank (SARB). Against expectations for a cut, the MPC decided to keep the policy interest rate unchanged. Additionally, we look at the latest consumer inflation numbers from Statistics South Africa (Stats SA), which shows that August...

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BER Weekly

22 September 2017
In the domestic section we unpack the latest decision by Monetary Policy Committee (MPC) of the South African Reserve Bank (SARB). Against expectations for a cut, the MPC decided to keep the policy interest rate unchanged. Additionally, we look at the latest consumer inflation numbers from Statistics South Africa (Stats SA), which shows that August...

Read the full issue