currency by keeping inflation low and steady. This paper provides evidence that monetary policy tightening aimed at maintaining … low and stable inflation could at the same time reduce consumption inequality over a 12-18 month horizon, commonly … benefit mainly from lower inflation. By contrast, the real consumption of individuals at higher ends of the consumption …

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 …

Inflation forecasts are modelled as monotonically diverging from an estimated long-run anchor point, or 'implicit … anchor', towards actual inflation as the forecast horizon shortens. Fitting the model with forecasts by analysts, businesses … and trade unions for South Africa, we find that inflation expectations have become increasingly strongly anchored. That is …

When faced with a relative price shock, monetary authorities often aim to contain its second round effects on inflation … while accepting first round effects. We analyze the experience of South Africa and other inflation targeters to explore … whether and when this policy prescription implies changing the monetary policy stance. Inflation targeting central banks …

This paper applies a state-space approach to estimate the implicit inflation target of the South African Reserve Bank … (SARB) since the adoption of the Inflation Targeting (IT) framework. The paper's findings are two. First, although the … official inflation target range is 3.6 percent, in practice, the SARB seems to have aimed for the upper segment of the band (41 …

nominal interest rates more than proportionally to inflation. Nevertheless, steep deviations from the Taylor Rule have taken … found for Brazil. More surprisingly, they are smaller than South Africa's, the continent's sole long-term inflation targeter …