Anglo-Saxon capitalism: Despite its name, Anglo-Saxon capitalism has nothing to do with the trade in stone axes. Instead it is a term often used to describe a form of capitalism that is said to be prevalent in the English speaking world - in particular the US and UK, but also in Canada, Australasia and Ireland.
The "Anglo-Saxon" variant of capitalism is thought to be characterised, at the level of states, by lower taxes, looser regulation, a weaker social-safety net and greater ease for firms to hire and fire employees - and to take each other over. At the level of individual firms and businesses, Anglo-Saxon capitalism is said to emphasise the interests of shareholders, rather than other stakeholders such as employees. Its critics say that it emphasises short-term profits at the expense of long-term planning.
Anglo-Saxon capitalism is sometimes contrasted with the more "corporatist" models, traditionally favoured in Germany, France and Japan - which can emphasise long-term relationships with banks, rather than shareholders - and which are more accepting of the idea of a state-led industrial policy.
Another variant is "nordic capitalism", where firms operate against the background of a high-tax, high-spend government. [ref: FT Lexicon]
Developmental state: A concept adopted by some Asian Tiger nations, including Singapore and Malaysia, where the state plays a key role in supporting the private sector to produce jobs. A number of Asian states, including the communist Vietnam, were actually privatising state entities and China was underpinning private sector industrial projects. However, there were few signs that this was the model that South Africa favoured. It is not clear what a developmental state means in the South African context.
Inflation targeting: Inflation targeting is a monetary policy strategy used by central banks for maintaining prices at a certain level or within a specific range. Using methods such as interest rate changes, this could help guide inflation to a targeted level or range.
This policy is designed to assure price stability.
Initially, it was a radical plan adopted by New Zealand in 1989, although other countries, most notably Germany, had evolved something close to inflation targeting considerably earlier.
The term “inflation targeting” does not have a formal definition and is practised in different ways around the world.
It does have some core elements. There is an explicit inflation target; it is announced to the public; the monetary authorities aim to hit that target at a defined point in the future; there is some leeway for inevitable errors and shocks; and the monetary authority is not told how to hit the target but is accountable to the public for its performance.
Another benefit is transparency. If the monetary authorities have sufficient respect and credibility that people believe the target will be hit, households and companies can plan ahead, negotiating wages on the basis of expecting low and stable inflation. The policy is self-reinforcing: low inflation expectations lead to low inflation, confirming the low expectations and so on.
Countries adopting inflation targets have tended to have lower and more stable inflation after the change than before, and the framework has proved durable.
Prior to the financial crisis, inflation targeting was widely lauded for helping the UK to sustain more than a decade of stable prices and growth. But after explicit targets for consumer prices failed to prevent the credit bubble and recession that followed, some economists now believe that greater weight should be put on asset prices in determining economic policy. [ref: FT Lexicon]
This policy is designed to assure price stability.
Initially, it was a radical plan adopted by New Zealand in 1989, although other countries, most notably Germany, had evolved something close to inflation targeting considerably earlier.
The term “inflation targeting” does not have a formal definition and is practised in different ways around the world.
It does have some core elements. There is an explicit inflation target; it is announced to the public; the monetary authorities aim to hit that target at a defined point in the future; there is some leeway for inevitable errors and shocks; and the monetary authority is not told how to hit the target but is accountable to the public for its performance.
Another benefit is transparency. If the monetary authorities have sufficient respect and credibility that people believe the target will be hit, households and companies can plan ahead, negotiating wages on the basis of expecting low and stable inflation. The policy is self-reinforcing: low inflation expectations lead to low inflation, confirming the low expectations and so on.
Countries adopting inflation targets have tended to have lower and more stable inflation after the change than before, and the framework has proved durable.
Prior to the financial crisis, inflation targeting was widely lauded for helping the UK to sustain more than a decade of stable prices and growth. But after explicit targets for consumer prices failed to prevent the credit bubble and recession that followed, some economists now believe that greater weight should be put on asset prices in determining economic policy. [ref: FT Lexicon]
Shadow banking: The collection of instruments, structures, firms or markets which, alone or in combination, and to a greater or lesser extent, replicate the core features of commercial banks: liquidity services, maturity mismatch and leverage. They are often considered a product of ‘regulatory arbitrage’ and can be problematic if the resulting non-bank forms of financial intermediation replicate the systemic risks posed by banking itself. [Ref: Financial Regulation Forum]
Walking Through the Doors Project: Brings together around 60 academics, experts and COSATU leaders in a range of teams focussing on politics and governance, economic and workplace issues. COSATU is launching a strategy to take forward concretely the gains its has made and convert them into real improvements at the political, socio-economic and workplace level.
An article in the Mail and Guardian provides more information about this project.
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