Title Monetary policy and relative price shocks in South Africa and other inflation targeters / prepared by Alfredo Cuevas and Secil Topak

Published Washington, D.C. : International Monetary Fund, ©2008

Click on the following:
IMF eLibrary

Copies

Description 1 online resource (25 pages) : illustrations Series IMF working paper ; WP/08/289. Contents I. Introduction; Figures; 1. Food and Price Shocks in Perspective; II. First and Second Round Effects of Relative Price Shocks; 2. Evidence of Second Round Effects of Shocks to Food Prices; Tables; 1. Granger Causality Tests; 3. Effects of Relative Price Shocks on Inflation Expectations; 4. Second Round Effects May Already Be in Train in South Africa; III. Historical Perspective on Monetary Policy Responses to Relative Price Shocks; 2. Estimation of Equation 1 for Selected Countries; 3. Distribution of the Coefficient on the Variable Representing Underlying Inflation 4. Distribution of the Coefficient on the Variable Representing Relative Price Shocks5. Indicators of Inflation in Sample Countries; 6. Rolling Estimates of Equation 1 for South Africa; IV. Recent Monetary Policy Decisions Around the World; 5. Re-Estimation of Equation 1 for the Period Under Inflation Targeting; 6. Selected Recent Tightening Decisions; 7. Selected Recent Easing Decisions.; 7. Implicit Lengthening of the Policy Horizon in South Africa; V. Concluding Remarks; Appendix; References Summary 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 differ on how aggressively they typically react to relative price shocks, reflecting differences in resilience of underlying inflation to such shocks. An examination of individual policy decisions reveals the importance of the broader economic context in framing the responses to relative price shocks Notes At head of title: African Department "December 2008." Bibliography Includes bibliographical references (pages 24-25) Notes Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 MiAaHDL English Print version record digitized 2011 HathiTrust Digital Library committed to preserve pda MiAaHDL Subject Monetary policy -- South Africa -- Econometric models Inflation (Finance) -- South Africa -- Econometric models Banks and banking, Central -- South Africa -- Econometric models Banks and banking, Central -- Econometric models Inflation (Finance) -- Econometric models Monetary policy -- Econometric models Geldpolitik. Relativer Preis. Schock. Inflation Targeting. Taylor-Regel. Südafrika. South Africa Form Electronic book Author Topak, Secil, author. International Monetary Fund. African Department ISBN 1283512688 9781283512688 1451992297 9781451992298 9781451994339 1451994338 1462330568 9781462330560 9786613825131 6613825131

  Permalink