A couple of weeks ago the School of Economics had the privilege to host Dr Johan van den Heever of the SA Reserve Bank at our seminar series. He spoke about the South African economy’s reaction to extreme monetary policy settings in an interesting overview of economic events and policy reactions since the early 1970’s. There were clear episodes of extreme policy settings in 1984, 1998 and 2009. He also had an interesting real repo rate graph that showed how loose (-8% in 1987) and tight (14.2% in 1998) monetary policy was at times. It was also fascinating to see that interest rates have not been well correlated with capital flows / the exchange rate, but the repo is more clearly linked to credit extension. It really is a pleasure to host an economist of Johan’s caliber for a seminar and we hope to see him more frequently next year.
A word of thanks to Prof Kleynhans who made all the arrangements for the ECON622 group.