Evidence-based policy requires high quality data and research. We have shown in earlier blog posts that South Africa ranks towards the bottom of major economies in terms of the extent to which research is prioritised (here and here). The same is true for economic and policy research, both in terms of the quantity (here and here) and its quality and impact (here and here). Another constraint to evidence-based policy is a lack of independent analysis. Much of the policy-relevant research that is produced by South African research institutions and think tanks is not independent, with funders playing a role in the topics considered and positions taken. Though there is a lot of high quality private sector analysis, this is usually not in the public domain.
Codera Analytics is private, independent and democratising access to data, analytics and policy research. We apply leading-edge frameworks to a range of economic and financial policy issues to answer the questions that matter to the South African public.
We are pleased to publish a new Policy Paper on Gaps in the South African Inflation Targeting Debate. This paper presents a primer on assessing South Africa’s optimal inflation target and the implications of the economy’s structural characteristics for the conduct of monetary policy. To help advance the debate about South Africa’s inflation target, the paper discusses five unresolved questions around South Africa’s inflation targeting framework:
• What should the inflation target be?
• Which inflation measure should be targeted?
• How to better anchor inflation expectations?
• How should the transition to a lower target be managed?
• What are the implications of a target review for central bank communication?
The paper is publicly available here.
For those interested in our policy research and automated analytics, feel free to contact us for a demonstration.
