Measured in terms of unit labour costs, German industry gained an advantage of 15 % since 1999. At this point one sidestep: It’s sometimes argued that higher inflation rates support growth because lower real interest rates foster investment activities.
While it should be acknowledged that not all countries in Africa might be ready to adopt inflation targeting, it follows quite logically from the pursuit of price stability. Many African countries could probably benefit from working towards adopting an inflation targeting monetary policy framework.