Second, we have to ask ourselves whether the adoption of an inflation targeting system will have any consequences for monetary conditions in the CMA countries. One important reason given by the South African authorities for the change is that an explicit inflation targeting framework will be more transparent than the previous framework.
Furthermore, these countries were less vulnerable to backtracking and the reimposition of controls in the face of exogenous shocks. In fact, the pursuit of reforms in other areas by these countries instilled confidence in the process of opening up of the capital account. Countries with weak initial conditions have to adopt drastic measures in macro economic policies to facilitate the move to CAC.