sector inflation expectations has become an essential channel through which this goal is achieved. This evaluation aims to … improve the understanding of how the sensitivity of private sector inflation expectations to macroeconomic surprises in South … anchoring inflation expectations. If a central bank is credible, the financial markets should react less sensitively to …

-side effect. We argue that it is crucial for monetary authorities to understand whether an increase in expected future inflation … is due to supply shocks or demand shocks before applying contractionary policy to forestall inflation. Using a standard … whether the South African Reserve Bank should apply contractionary policy to fight inflation depends critically on the nature …

inflation-targeting regimes that deserves more attention is reformulating their targets explicitly in terms of core inflation …. Core inflation targeting has a better theoretical grounding from both welfare economics and business cycle perspectives …, holds practical advantages for inflation-targeting central banks, and has the promising feature of improving the frankness …

a result, aggregate inflation expectations of the public as a whole can be described as ‘sticky’ in that the spread of … information about inflation expectations through the economy is not instantaneous. A body of literature has emerged over the past … provide insight into how the general public in South Africa forms its inflation expectations. This enables an estimation of …

period information sets. In the literature the choice of proxies for the inflation expectations and output gap measures are …

Inflation targeting is a forward-looking framework for monetary policy that has brought unprecedented transparency to …) Monetary Policy Committee (MPC) has, since the introduction of inflation targeting, successfully communicated to the public its …

focused on maintaining low and stable inflation. Assuming that potential output is determined mainly by the quantity and … can sustain for long periods of time. If the economy grows at a different rate from the potential output, then inflation … between actual output and potential output (or the output gap). If the output gap is positive inflation tends to rise and vice …