Does the South African rand's relatively large volatility affect inflation? To shed some light on this question, a … standard estimation technique of exchange rate pass-through to inflation is extended to incorporate exchange rate volatility …. Estimated results suggest that higher exchange rate volatility tends to increase core inflation but to a relatively limited …

achieve the price stability target of 2 percent inflation. In this paper, a forward-looking open-economy general equilibrium … inflation target over the medium term is below 40 percent, assuming the absence of other policy reactions aside from monetary … policy. The likelihood of achieving the inflation target is even lower under alternative risk scenarios. A positive shock to …