Lesetja Kganyago: Policy choices in a low growth, high inflation environment Address by Mr Lesetja Kganyago, Deputy Governor of the South African Reserve Bank, at the University of Limpopo, Faculty of Commerce, Sovenga, Limpopo, 6 June 2014. * 1.
*  *  Introduction  Last week in the Financial Times, columnist Wolfgang Münchau reported a conversation he had with a central banker in the 1990s, at a time when inflation targeting was first being adopted. What would you do, Münchau asked then, if you faced stagflation – low growth and high inflation? Would you raise rates and risk a recession?