Of course some old lessons remain, namely that controlling inflation at lower and stable levels continues to be of paramount importance to central banks, given its vagaries and distortive and erosive effects. Questions are often asked as to why South Africa does not instead target employment.
Monetary policy cannot contribute directly to economic growth and employment creation in the long run, but by creating a stable financial environment, monetary policy fulfils an important precondition for the attainment of economic development. The underlying rationale for controlling inflation is that low inflation will provide an appropriate basis for sustainable growth.