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2 edition of Relative merits and implications of inflation targeting for South Africa found in the catalog.

Relative merits and implications of inflation targeting for South Africa

Gunnar Jonsson

Relative merits and implications of inflation targeting for South Africa

by Gunnar Jonsson

  • 78 Want to read
  • 33 Currently reading

Published by International Monetary Fund, African Department in [Washington, D.C.] .
Written in English

    Subjects:
  • Inflation (Finance) -- South Africa.,
  • Monetary policy -- South Africa.

  • Edition Notes

    Statementprepared by Gunnar Jonsson.
    SeriesIMF working paper -- WP/99/116
    ContributionsInternational Monetary Fund. African Dept.
    The Physical Object
    Pagination24 p. :
    Number of Pages24
    ID Numbers
    Open LibraryOL19228070M

    Inflation at 6%, hitting the ceiling of the SARB inflation target range. Hitting the ceiling of the South African Reserve Bank (SARB) inflation target range, the CPI comes in at 6% this month, with a 1,3% monthly increase. The monthly increase is the largest since June (1,4%). South Africa had formally introduced a policy of inflation targeting (IT) in February By December , the governor of the South African Reserve Bank after reading the latest statistics is concerned with the disappointing economic data.

      However, most Central Banks target an inflation rate of 2%, suggesting that low inflation can have various advantages to the economy. Some economists even argue we should target a higher inflation. The economy of South Africa is the second largest in Africa, after Nigeria. As a regional manufacturing hub, it is the most industrialized and diversified economy on the continent. South Africa is an upper-middle-income economy – one of only eight such countries in Africa. Since , at the end of over twelve years of international sanctions, South Africa's Gross Domestic Product almost Country group: Developing/Emerging, Upper .

    The book begins by explaining the unique features and advantages of inflation targeting. The authors argue that the simplicity and openness of inflation targeting make it far easier for the public to understand the intent and effects of monetary policy. The Impact of Inflation Targeting on Inflation Volatility in South Africa.


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Relative merits and implications of inflation targeting for South Africa by Gunnar Jonsson Download PDF EPUB FB2

It discusses the implications and relative merits of such a framework for South Africa, and concludes that it would be feasible and desirable for South Africa to adopt explicit inflation targeting. Doing so could reduce uncertainties about the Reserve Bank's objectives and enhance the transparency.

It discusses the implications and relative merits of such a framework for South Africa, and concludes that it would be feasible and desirable for South Africa to adopt explicit inflation targeting. Doing so could reduce uncertainties about the Reserve Bank`s objectives and enhance the transparency of monetary by: Title: The Relative Merits and Implications of Inflation Targeting for South Af rica - WP/99/ Created Date: 10/15/ PM.

Get this from a library. Relative merits and implications of inflation targeting for South Africa. [Gunnar Jonsson; International Monetary Fund.

African Department.] -- Annotation This paper describes the main elements of inflation targeting, reviews its pros and cons, and examines the experiences thus far in countries using this framework. It discusses the implications and relative merits of such a framework for South Africa, and concludes that it would be feasible and desirable for South Africa to adopt explicit inflation targeting.

Doing so could reduce uncertainties about the Reserve Bank’s objectives and enhance the transparency Author: Gunnar Jonsson. precise definition of inflation-targeting countries but I note that the merits of inflation targeting continue to be debated in the US.

Inflation targeting in South Africa was formally introduced on 23 February with the announcement of a 3 to 6 per cent target for At that time, CPIX inflation - the rate we target - stood at 7 per cent. First, the South African experience with inflation targeting before the crisis was not successful, not in terms of advocates’ self-stated goals and certainly not in terms of key, ultimate real.

Inflation targeting is a monetary policy framework in which the central bank announces an explicit inflation target and implements policy to achieve this target directly.

One of the features of an inflation-targeting framework is the greater degree of transparency it brings to monetary policy. Inflation targeting has been adopted in a number of countries. In addition, because of the openness and depth of the South African foreign exchange market, the exchange rate is sensitive to changes in risk perceptions in global financial markets and associated changes in capital flows, an issue highlighted in Shakill Hassan's : Gill Marcus.

education (bachelors’ degrees) South Africa’s GDP per capita level in US dollar terms ($5 ) – an indicator of the relative wealth of a country’s citizens – is only a fifth of the group’s average ($30 ) and the lowest amongst the countries listed in this table. At the same time, South Africa’s top personal.

Since the introduction of the flexible inflation-targeting framework in Februarythe specification of the target has been reviewed on a number of occasions. The initial target measure was the CPIX, which was defined as the consumer price index for metropolitan and other urban areas, excluding the interest cost on mortgage bonds.

Inflation Dynamics in South Africa Asking to what extent the evidence points to a need to enforce price stability and the anchoring of inflation expectation, the book fills existing gaps in South African Policy, and maintains a clear argument that price stability is consistent with the 3 to 6 per cent inflation target range, and that.

Inflation in South Africa: An Assessment of Alternative Inflation Models Article in South African Journal of Economics 86(2) March with 17 Reads How we measure 'reads'. countries - including Colombia, South Korea, Mexico, Peru, and South Africa - do not publish inflation forecasts yet.

On the other extreme, Brazil adopted full-fledged inflation targeting right from the start. Country experience suggests that adoption of inflation targeting during the s has generally been regarded as a learning process for.

South Africa's inflation rate has fallen to a seven-year low, official statistics showed Wednesday, as food prices were tempered by improved rainfall with the easing of a national drought.

Inflation Targeting in South Africa. T.T. Mboweni. Governor of the South African Reserve Bank. Address delivered at the biennial Congress of the Economic Society of South Africa, Pretoria, 6 September Search for more papers by this author.

T.T. by:   The debate about what the Reserve Bank, long a target for South Africans with a grievance about the economy, should be doing has surfaced anew. And once more inflation targeting.

South Africa’s CPI reveals how volatile inflation hurts the poorest. Patrick Kelly, Executive Manager for Price Statistics, provides some insights into how inflation affects the most vulnerable. The combined effect of the severe drought and the depreciation of the rand drove annual food inflation to 9,8% in March, its highest level in four years.

To understand the effects of inflation, consider the following example of the purchasing power of $ inas compared to today.

According to the Bureau of Labor Statistics consumer price index, prices in are more than % higher than prices in South Africa has adopted flexible inflation targeting, wherein considerations for other macroeconomic variables are prioritized.

There is evidence of growing concern regarding South Africa’s monetary policy framework., emerging primarily from the trade union movement and the communist by: 2. This book brings together the experience of central banks and national statistical agencies in countries that focus their monetary policy on inflation targets.

Inflation targeting has led to a close interface between these two sets of institutions. When the performance of a central bank is measured in terms of specified price indices, which are usually compiled and disseminated by the national.For the TAR consistent model, the threshold value is ().

The value of Ф () is greater than () at 5% critical value. Given that the bank lending rate and the money market rate are co-integrated, the study tests for symmetric adjustment (ρ 1 = ρ 2).The F-equality statistics () is less than the critical value () at 5% in South Africa and the F-equality statistics (5 Cited by: As shown in Fig.

1, though inflation rates all over the world have been on a decline since the s, there are marked differences in the levels of inflation among developed, developing and African countries, developed countries have had the lowest inflation rates while Africa has had the highest rates of ng inflation is therefore still a top priority for many African Cited by: 5.