Head of the South African Central Bank warns against populist policies



Governor of the Reserve of South Africa, Lesetja Kganyago, has warned the country to avoid populist economic policies and give priority to strategies that lead to sustainable growth and job creation.

Kganyago said that the central problem was to avoid the temptation to pursue an economic policy that has short-term, populist benefits but costs in the long term.

"The central problem is avoiding the temptation to pursue an economic policy that has short-term, populist benefits but costs in the long term," Kganyago wrote in an opinion piece in the Johannesburg-based Business Times. Such decisions lead to higher public or private debts to finance consumption, which contributes to recent market infections, he said.

The central problem is avoiding the temptation to pursue an economic policy that has short-term, populist benefits but costs in the long term.

The most industrialized economy in Africa experienced a recession in the second quarter, with a weakening of the periphery to a two-year low.

According to the head of the central bank, the rapid depreciation of the currency reflects the perception that South Africans are discussing policy that threatens to undermine the macro framework rather than creating stronger economic growth and job creation.

He added that another task is to get more out of government spending to free corruption institutions and improve health and education outcomes. "


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