The South African approach has been to speak clearly to the monetary policy challenges we face and to highlight the constraints to better results, even if these lie outside the immediate span of monetary policy. This has not won us many friends, but it has helped to foster a better public discussion about the challenges holding back our economy.
I want to spend some time today discussing the shift in global inflation from one paradigm to another, and then discuss how these challenges impact policymaking in emerging economies, with particular reference of course to South Africa. Genesis of a global inflation shock In late 2019, before the COVID-19 pandemic, inflation was expected to remain low, or even fall further.