CRITICS of the SA Reserve Bank (SARB) monetary policy are calling for “the relevant committee in Parliament to open a public debate on macroeconomic policy and to pave the way for the necessary changes in legislation to effect change in policy”. This was a post on Twitter by Professor Chris Malikane, associate professor in economics at Wits University. He’s one of twenty-five economists who are signatories to a letter rejecting the current macroeconomic policy regime as “defunct”.
“For the sake of current and future generations and democracy, the Reserve Bank and Treasury must be held accountable and participate in a discussion about the best way forward for macroeconomic policy. Our starting point in that discussion is that the entire macroeconomic framework is defunct and has to be dispensed with — or we risk degenerating into a failed economy, society and state”.
The letter, part of an ongoing debate on SA’s macroeconomic policy, blames the country’s economic mess on SARB’s misguided approach to monetary policy and neoliberal dogma.
The signatories as at 7 June 2020 are:
Vishnu Padayachee, Distinguished Professor in Development Economics at School of Economics and Finance, Wits University.
Chris Malikane, Associate Professor in Economics, Wits University
Pundy Pillay, Professor at School of Governance, Wits University
Robert van Niekerk, Professor and Chair in Public Governance, Wits University
Lumkile Mondi, Senior Lecturer, School of Economics and Finance, Wits University
Nicolas Pons-Vignon, Senior Researcher, School of Economics and Finance, Wits University
Samantha Ashman, Associate Professor, School of Economics, College of Business and Economics, University of Johannesburg
Simon Roberts, Professor in Department of Economics and Econometrics, University of Johannesburg
Mojalefa Ralekhetho, Professor at Central University of Technology
Greg Ruiters, Professor at School of Government, University of the Western Cape
Rasigan Maharajh, Professor and Chief Director, Institute for Economic Research and Innovation, Tshwane University of Technology
Mario Scerri, Professor and Senior Research Fellow, Institute for Economic Research and Innovation, Tshwane University of Technology
Firoz Khan, Associate Professor, School of Public Leadership, University of Stellenbosch
David Fryer, Senior Lecturer, Department of Economics and Economic History at Rhodes University.
Niki Cattaneo, Rhodes University Hameda Deedat, Acting Executive Director, on behalf of National Labour and Economic Development Institute – NALEDI
Isobel Frye, Director, on behalf of Studies in Poverty and Inequality Institute – SPII
Dick Forslund, Senior economist, Alternative Information and Development Centre – AIDC.
Dominic Brown, Manager of the Economic Justice Program at AIDC Brian Ashley, Director of AIDC
Duma Gqubule, Director at Centre for Economic Development & Transformation
Seeraj Mohamed, macroeconomist
Riaz K Tayob, Southern and East African Trade Institute – SEATINI, South Africa
Loyiso Mbabane, independent Economist and Developmentalist
Redge Nkosi, Executive Director, FIRSTSOURCE MONEY
“We welcome, finally, a written response to critiques of SA Reserve Bank (SARB) monetary policy, specifically, SARB research head Chris Loewald’s “Depression risk a bad reason to jettison macroeconomic policy frameworks.” (Business Day, 31 May). But it is precisely because the risk of a Depression is so high (a more than 10% GDP crash) that we must see change in those frameworks…..” Here’s the full letter 25 Signatories Rejecting SARB Monetary Policy