Logan on 2008/05/29 10:54:06 PM - Maybe we need change !
If the aNC does decide to relax the inflation targets a bit that won't be a problem, economists are fiercely divided anyway over what level of inflation is ok. To deny that is contested terrain would be silly, the research papers are all over the place. The problem is that we have to be flexible enough to maintain social stability. Economic policy purity is for lecture halls, not the real world. Anyway, where is all this so-called investment? Years of low inflation and very little FDI, a few biggies and that's it, compared to Brazil, India etc. Investors want growth, not policy purity. p.s. Nicolaas, interesting points! Isn't the monthly inflation taken care of by the annual wage increase if based on annualised inflation rate?
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