University of Oxford

Monetary policy in South Africa's transition economy has recently undergone important changes. Given substantial capital account liberalisation and the medium-term constraints on fiscal policy, monetary policy has the major responsibility for curbing inflation and currency instability, and yet trying to ensure sufficient growth for longer-term political stability. The move to inflation targeting from 2000, is aimed at enhancing policy transparency and accountability and thereby to decrease inflationary expectations. By contrast with targeting the exchange rate directly, the exchange rate is viewed as only one factor influencing inflation, and targeting was expected to result in less interest rate volatility, with less detrimental effects on growth. Successful inflation targeting demands good forecasting models of inflation, clarity on the mechanisms of monetary transmission, an institutional design that guarantees the transparency and accountability of policy, and a shared understanding with the private sector, of the effectiveness of monetary policy for inflation. This project, which is funded by DFID, aims to provide an analysis to evaluate the design and operation of the new monetary policy regime and its implications for sustainable growth.

Contact Details
Professor Paul Collier
Email: csae.enquiries@economics.oxford.ac.uk
Phone: 01865 271084
Fax: 01865 281447

Dr C S Adam

Development macroeconomics; African economics; applied econometrics

Dr J Aron

International economics, monetary economics, applied macroconometrics on the South African economy

Dr A Barr

Experimental economics and micro econometrics applied to development issues

D L Bevan

Public economics: macroeconomic policy in developing countries

Prof P Collier

Applied economics of Africa

Dr S Dercon

Development economics, microeconomics

Dr M Fafchamps

Development economics. Risk coping mechanisms. Market Institutions. Intrahousehold allocation

Dr A Hoeffler

economics of conflict

Dr K Imai

Development economics, applied econometrics, risk-coping, savings and poverty dynamics in LDCs, real options theory

Dr G Kingdon

Economics of education; labour force participation and earnings

Prof J B Knight

Development economics - labour markets, income distribution, human capital, with application to China and Africa

Dr T Owens

Applied microeconomic research focussing on: poverty; growth of rural incomes; and the role of aid

N Rankin

Efficiency, exports and African manufacturing

E Robinson

Property rights, enforcement, and conflict in LDCs, natural resource modelling

Dr M Soderbom

Applied microeconomics, investment, exports, productivity, African industry

Dr F Teal

Applied microeconomics of Africa, analysis of firms and labour markets

Prof J Toye

Trade and development

M Vigneri

Trade liberalisation policies in Sub-Saharan Africa