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English
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Number of pages / Number of words: |
12 / 3288 |
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This goes against the view of the governor of the South African Reserve Bank (SARB) Tito Mboweni who argues that the link between CBI, inflation and long-term growth is a positive one.
"Independent central banks are more likely to achieve lower growth because politicians have less opportunity to manipulate interest-rates for short-term political gain...
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Low inflation is good for long-term growth". (www.economist.com.na/2003/17oct-10-17-06.htm).
As the relationship is a negative one, there is a tendency for policy makers and politicians to push the economy to run faster and further than its capacity limits allow and the temptation that governments have to incur budget deficits and fund these borrowings from the central bank...
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