Forecasts are crucial for all economic and business activity. But looking into the future involves uncertainty and risk. Forecasts may be inaccurate, which creates a serious dilemma for policy makers
The rand’s current weakness can be attributed to a myriad of structural problems facing South Africa’s economy.
Reuters
Like any commodity, the value of the rand is determined by the market forces of supply and demand. Its weakening is also affected by a myriad of structural problems facing the South African economy.
Nelson Mandela with his predecessor FW de Klerk. Tough questions are being raised about the compromises Mandela made for South Africa’s transition to democracy.
Reuters/Peter Andrews
South Africa’s transition into democracy involved compromises that left white privilege intact and black poverty undiminished. Here are a dozen of Mandela’s economic deals that need to be undone.
Charting a different course.
REUTERS/Kacper Pempel
Inflation-targeting central bankers need to focus on stabilising inflation and not be sidetracked into correcting all other macroeconomic and financial problems.
The sour face means the Fed must be about to raise rates.
Reuters
The continued ownership of shares in central banks by private investors may be a superfluous relic but it enhances governance and adds to the transparency and accountability of central banks.
Money is much more than just bank notes and coins issued by central banks.
EPA/Aaron Ufumeli
The misguided belief that banks create money out of nothing has generated public anger with organisations and individuals calling for an overhaul of the system and an end to money creation by banks.
Hamilton’s political enemies unduly tarnished his legacy.
'Hamilton' via www.shutterstock.com
The South African Reserve Bank is a fine example of clear communication of the decision whether to hold, increase, or decrease interest rates. It also gives clear signals of future decisions.
Implementing monetary policy is like treating a patient. A central bank needs the freedom to choose which instrument will work best.
from www.shutterstock.com
Mario Draghi did get round to announcing a much-anticipated new round of quantitative easing (QE) in the end, but never have nine minutes felt so long. The world tuned into the European Central Bank press…
Currency wars have been predicted for years. Outright monetary battles were last seen during the Great Depression of the 1930s, when governments competed to devalue their currencies to gain market advantage…
The People’s Bank of China recently cut interest rates to stimulate the economy. But it probably won’t fix the real problem.
Reuters
China’s central bank surprised most observers last month when it announced its first interest rate cut in more than two years. The move is intended to bolster growth in the world’s second-largest economy…
The collapse of Lehman Brothers was a pivotal moment in the most recent financial crisis. The next crash may feature another bank failure.
Reuters
The subprime crisis and the subsequent failure of Lehman Brothers came as such a shock – and the repercussions were so severe that when the time came to mount a response, policy makers were as surprised…
There are high hopes that the new head of the Fed, Janet Yellen, will change the culture at the central bank and the lenders it regulates.
IMF/Flickr via CC BY-NC-ND
Federal Reserve Chair Janet Yellen has her work cut out for her if she hopes to change the culture at the world’s most important central bank. Media reports abound with evidence that the financial industry…
Janet Yellen will make waves next year.
International Monetary Fund
As the US economy emerges from recession, the prospect of the US Federal Reserve raising interest rates grabs the attention of the financial markets more and more. US rates have been close to zero for…
Bank downgrades have sparked anger in South Africa.
Nic Bothma/EPA
It’s an unnerving time for Africa’s banking industry. On August 19, the ratings agency Moody’s announced it had downgraded by a notch the risk rating of South Africa’s four biggest banks – FirstRand, Standard…
Distinguished Professor and Derek Schrier and Cecily Cameron Chair in Development Economics, School of Economics and Business Sciences, University of the Witwatersrand