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) 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 …
Persistent link: https://www.econbiz.de/10005773223
This paper analyses the extent to which the South African Reserve Bank (SARB) uses the repo rate in response to exchange rate depreciations. We use a Vector Autoregression to model the simultaneous linkage between the real effective exchange rate and the policy rate. A combination of short-run...
Persistent link: https://www.econbiz.de/10010775491
Purpose – This paper seeks to assess the impact of monetary policy on house price inflation for the nine census … investigation show that house price inflation responds negatively to a positive monetary policy shock, suggesting that the framework … VARs. Research limitations/implications – The paper only considers house price inflation and ignores other housing market …
Persistent link: https://www.econbiz.de/10009143638
The paper explores one rationale behind the existence of financial repression, with the latter being represented through the obligatory "high" reserve requirement for the banks. Using an overlapping generation production-economy-monetary model characterized by the possibility of banking crisis,...
Persistent link: https://www.econbiz.de/10005838958
The paper explores one rationale behind the existence of financial repression, with the latter being represented through the obligatory ¡°high¡± reserve requirement for the banks. Using an overlapping generations production-economy-monetary model characterized by possibility of banking...
Persistent link: https://www.econbiz.de/10009150742
- 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 …
Persistent link: https://www.econbiz.de/10008500717
In this paper, we focus on the stochastic (chaotic) attributes of the US dollar-based exchange rates for Brazil, Russia, India, China and South Africa (BRICS) using a long-run monthly dataset covering 1812M01-2017M12, 1814M01-2017M12, 1822M07-2017M12, 1948M08-2017M12, and 1844M01-2017M12,...
Persistent link: https://www.econbiz.de/10012908621
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 …
Persistent link: https://www.econbiz.de/10011095462
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 …
Persistent link: https://www.econbiz.de/10010784810
The paper develops a short-run model of a small open financially repressed economy characterized by unorganized money markets, intermediate good imports, capital mobility and flexible exchange rates. The analysis shows that financial liberalization, in the form of increased rate of interest on...
Persistent link: https://www.econbiz.de/10005773168