This paper estimates the optimal monetary authorities’ response to deviations of inflation and output from their target … values for South Africa over the inflation targeting era. This is achieved using an empirical framework that allows the … react in a passive manner when inflation is within the target band and become increasingly aggressive when it deviates from …

revised information, we consider linear and nonlinear policy functions in inflation, output and a measure of financial … behavior. The 2007-2009 financial crisis witnesses a shift from inflation targeting to output stabilisation and a shift, from … an asymmetric policy response to financial conditions at high inflation rates, to a more symmetric response …

) announced that an inflation zone targeting regime of 3-6% would be in place. We find that a model specification embodying a … simple inflation learning rule for the future inflation rate seems to provide a better understanding of the decision process … made by the SARB in its interest rate setting policy. The main findings are that the adoption of inflation targeting led to …

. The SARB’s response of monetary policy to inflation is greater during business cycle recessions with not much weight on … crisis witnesses an overall decreased reaction to inflation, output and financial conditions amidst increased economic …

We test the concept of the Opportunistic Approach to monetary policy in South Africa post 2000 inflation targeting … intermediate target that reflects the recent history of inflation rather than simple inflation target improve the fit of the models … when inflation is within the zone of discretion but react aggressively otherwise. Recursive estimates from our preferred …

- and post-inflation targeting periods. For this purpose, we use a Factor-Augmented Vector Autoregressive (FAVAR) model … macroeconomic variables, including inflation, has increased in the post-targeting period. But, majority of the effects are …

The conduct of inflation targeting is heavily dependent on accurate inflation forecasts. Non-linear models have … African infl ation by means of non-linear models and using a long historical dataset of seasonally-adjusted monthly inflation …, given the fact that 1969:10 marks the beginning of a protracted rising trend in South African inflation data, we estimate …

The oil price-inflation relationship has been at the center of attention among economists and policy makers, especially … after 1970’s oil shocks that resulted to a significant increase in the inflation rate in number of countries around the … world. In this study, we aim to investigate the evolving relationship between oil price and inflation in South Africa, using …

This paper exploits the Lucas’ (1973) signal extraction model to study the effect of uncertainty in the output-inflation … trade-off on inflation, using a monetary model with asymmetric central bank preferences over inflation and output. We show … monetary policy to influence inflation movements so that, higher volatility in monetary policy causes inflation to rise …