POSTGRADUATE:

South Africa has chosen inflation targeting as its policy framework to ensure low inflation and stable economic growth. This framework has come under some criticism globally because of its inability to deal with asset price bubbles. Here at home, several analysts have argued that it would be better for South Africa to control the currency to ensure low inflation and greater competitiveness.

Using published theoretical and empirical evidence as well as your own  empirical analysis, discuss what monetary policy framework is appropriate for South Africa to ensure low inflation and a stable economic environment.

UNDERGRADUATE:

Some people are of the view that income inequality is a necessary part of the growth process, that it is generally unavoidable and that policy should focus on ensuring that everyone is doing better rather than focusing on narrowing the income gap. Other analysts argue that income inequality undermines growth and that policies aimed at reducing inequality will support growth too.

Based on international experience, economic theory and empirical evidence, what is your view of this important debate?