A key role of central banks is to conduct monetary policy, in order to establish low, stable inflation and to reduce economic fluctuations. The policy framework utilised by central banks to achieve this key role has changed enormously in recent decades. In February 2000, South Africa adopted an inflation-targeting monetary policy framework.

Recently, several opposition politicians have argued that inflation targeting is one of the primary reasons for our pedestrian economic growth. Discuss your view of the merits and/or demerits of inflation targeting in South Africa, and whether you believe the inflation targeting framework has been a success or a failure, since its inception.