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IMF: Inflation-targeting the right policy for SA

JOHANNESBURG, SOUTH AFRICA Mar 10 2010 14:47

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Inflation-targeting is the right policy for South Africa, the International Monetary Fund (IMF) said on Wednesday.

IMF managing director Dominique Straus-Kahn said the policy, however, had to be used "flexibly".

"The South African economy has weathered the immediate effects of the global crisis, mainly due to sound macroeconomic policies, its flexible monetary and exchange rate regime, and a well supervised financial system," he told media in Johannesburg, following his two-day visit to South Africa.

He said during his visit he had had productive discussions with the authorities on the country's economic outlook and challenges.

Fiscal policy had been appropriately counter-cyclical, striking the proper balance between supporting output and preserving medium-term sustainability, he said.

Straus-Kahn said, however, South Africa continued to face difficulties as unemployment was extremely high.

South Africa's success had important implications for the rest of Africa.

"As a member of the G20, it has a leadership role to play in advancing prosperity across the continent and making the voice of Africa heard in the international arena."

Straus-Kahn was on an African tour that began in Kenya. His next stop is Zambia. -- Sapa

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Comments

"South Africa continued to face difficulties as unemployment was extremely high." Haha - as always we manage to save the economy, but never the citizens.

It boggles my mind why we continue to give the IMF the time of day. Every country they "assist" (Argentina, most of Africa etc.) turns into a hell hole. "IMF" is a swearword in most of Asia where they created the Asian Monetary Fund just so that they wouldn't have to have anything more to do with these terrorists.

Benny Alberts on March 10, 2010, 3:46 pm

What other utter nonsense does one expect from the "International Monkey Fund". They have to defend the crocked fractional banking system - which pays their salaries -, not looking for a just money system with no inflation, low interest rates and in the favour of every citizen and the economy. The state having full control of the money supply scares the hell out of this - to be buried - institution. Even the banks would profit in relinquishing their private tax on producing money out of nothing, creating more debt and more inflation. We would be all better off to send the international monkeys with their fund into retirement immediately.

Michael Duerr on March 11, 2010, 8:49 am