IDEAS home Printed from https://ideas.repec.org/a/afj/journl/v12y2010iconferencep98-109.html
   My bibliography  Save this article

Forward-Looking Monetary Policy Reaction Functions for South Africa

Author

Listed:
  • Irrshad Kaseeram

    (University of Zululand)

Abstract

This paper analyses the interes-rate decision-making behaviour of the South African Reserve Bank (SARB) since the of the adoption of the Inflation Targeting Monetary Policy Framework (ITMPF)1. The general method of moments (GMM) technique is used to model hybrid Taylor type rules, employing monthly revised data from the period January 2000 to February 2008. This study successfully demonstrates that policy responses are best described by a closed-economy reaction function that incorporates twelve months ahead-expected inflation together with the output gap. However, an open economy specification that includes deviations of real effective exchange rates from its reference value also gives plausible results.

Suggested Citation

  • Irrshad Kaseeram, 2010. "Forward-Looking Monetary Policy Reaction Functions for South Africa," The African Finance Journal, Africagrowth Institute, vol. 12(Conferenc), pages 98-109.
    • Handle: RePEc:afj:journl:v:12:y:2010:i:conference:p:98-109
    as

    Download full text from publisher

    File URL: http://www.journals.co.za/ej/ejour_finj.html
    Download Restriction: no
    ---><---

    More about this item

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:afj:journl:v:12:y:2010:i:conference:p:98-109. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk De Doncker (email available below). General contact details of provider: https://edirc.repec.org/data/afrgrza.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.