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Discuss South Africa’s inflation targeting regime with reference to the above article. Have monetary authorities been successful in maintaining the inflation rate within this threshold? How has the drought and the weakening of the rand impacted consumer prices, and what impact has this had on economic growth?
Main points that students need to incorporate within assignment: -Provide a background discussion regarding South Africa’s inflation targeting regime
-Analyse inflation rate trends since 1994, referring to the success/failure of authorities with respect to maintaining the target range
-Discuss the impact of the drought and the weak exchange rate on food prices
-Discuss the impact of the drought and the weak exchange rate on economic growth/agricultural sector e.g. how has the drought affected agricultural exports and GDP?