South Africa

Abstract

This Selected Issues paper for South Africa presents a quantitative analysis of inflation dynamics in the country. The conduct of monetary policy has been complicated by a variety of unanticipated events that have had important effects on inflation. Exposed to exchange rate and other shocks, the model confirms that a delayed policy response to inflation shocks leads to persistently higher inflation rates and, subsequently, to a sharp real contraction of the economy.Debt sustainability analysis;Financial sector;Public debt;Selected issues;Trade policy;Unemployment;inflation, monetary policy, monetary transmission, monetary transmission mechanism, inflation targeting, monetary fund, monetary authorities, inflation targeting framework, inflation rates, aggregate demand, real interest rates, inflation dynamics, national bank, monetary economics, transmission of monetary policy, foreign exchange, inflation rate, international liquidity, monetary policy reaction function, price level, gdp deflator, monetary reaction function, inflation process, real interest rate, terms of trade, nominal interest rates, rational expectations, monetary policy rule, inflation targeting regime

Similar works

Full text

thumbnail-image

Research Papers in Economics

Provided original full text link
Last time updated on 10/24/2014

This paper was published in Research Papers in Economics.

Having an issue?

Is data on this page outdated, violates copyrights or anything else? Report the problem now and we will take corresponding actions after reviewing your request.