Abstract: | Throughout the world, the independence of central banks is an issue of concern. In South Africa, the appointment of a government minister with strong political party affiliations in 1998 as governor-designate of the Reserve Bank caused widespread consternation, relating to independence issues. Much of the argument in favour of complete central bank independence is predicated on tenets of monetarism as best representing the workings of a modern monetary economy. However, since alternative post Keynesian monetary theory holds that monetary policy actions directly affect broader economic variables of growth, investment, employment, and even income distribution, it follows inevitably that the central bank cannot be accorded goal independence. This article examines the implications of the alternative post Keynesian tenets of monetary theory for central bank independence, relating these to the South African Reserve Bank in particular. Bibliogr. |