In recent years, activist monetary policy rules responding to inflation and the level of economic activity have been … advanced as a means of achieving effective output stabilization without inflation. Advocates of such policies suggest that … capacity as the primary underlying cause of the 1970s inflation and suggests that apparent differences in the framework …

a rationale for the practice of inflation zone targeting. We show that the presence of either zone-quadratic preferences … or a zone-linear relationship between inflation and economic activity provides strong incentives to deviate from … structure and relative preference towards economic stability in determining the width of the implied targeted inflation zone …

This paper reviews South Africa's monetary policy since 2007 and makes recommendations towards improving the inflation …-targeting framework currently in place. Following a surge in inflation into double digits in 2007/08, the South African Reserve Bank … managed to guide inflation in line with the 3-6 per cent target band. Estimates of South Africa's potential output underwent …