The Impact of Inflation on Economic Growth in Southern African Development Community · Electronic Theses and Dissertations

Author: Muranda, Rungano
Title: The Impact of Inflation on Economic Growth in Southern African Development Community
Abstract: This project uses the Southern African Development Community (SADC) as a case study to investigate how inflation affects economic growth. The motivation is apparent not only due to the dearth of studies examining this effect in the SADC region, but also because the impact of inflation on economic growth in developing nations may be different from that in developed nations due to their higher level of economic development and use of prudent macroeconomic policies.The majority of developed nations have autonomous central banks with a defined mission to control inflation levels within a given range (adopted an inflation targeting framework), hence the effects may vary. However, most developing nations' central banks lack a distinct framework for monetary policy that explicitly targets inflation. For instance, in the SADC region, only South Africa has implemented such a framework. Because it is one of the primary indicators of macroeconomic instability, inflation also serves as a measure of how well the government is managing the economy. High rates of inflation may be a sign that a nation's monetary authority is not being properly governed. Additionally, it is an indication that the government no longer has control over its finances.
Date: 2022
Publisher: BUSE
Keywords: Inflation
Supervisor: N/A