The anchor of our expectations

Last week a commentator or two said that monetary policy is now too tight. What is not well explained is whether they are proposing just a slightly less restrictive policy and a slightly lower interest rate to provide relief to consumers, or whether they are making an argument for a much more populist approach, with decidedly lower interest rates, to supposedly stimulate the economy. This is an important difference. This episode is supported by the Bureau for Economic Research in Stellenbosch and the NWU Business School.