The full text of this article

 

The South African monetary policy and inflation targeting as a nominal anchor: Does the monetary policy become more effective?
by Mohammed Umar; Jauhari Dahalan; Mukhriz Izraf Azman Aziz
International Journal of Monetary Economics and Finance (IJMEF), Vol. 9, No. 4, 2016

 

Abstract: This study investigates whether the South African inflation-targeting (IT) framework has performed the role of the nominal anchor and the process through which the monetary authority determines its instrument in the economy. The study employs generalised method of moments (GMM) estimators. The results of the post-IT adoption and full sample periods are characterised by forward-looking IT rule. Furthermore, the paper uses the augmented monetary policy rule to identify the factors that determine the monetary policy instrument for South Africa. The results confirm that the South African monetary economy practised full-fledged IT principle immediately after the adoption of the IT framework and the monetary policy rule serves as a nominal anchor for the economy. The policy implication is that for South Africa to continue keeping inflation to the required single-digit target, the Reserve Bank should further strengthen the IT framework adopted in the economy.

 

is only available to individual subscribers or to users at subscribing institutions.

 

Existing subscribers:

Go to Inderscience Online Journals to access the full text.

 

Pay per view:

If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

 
Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Monetary Economics and Finance (IJMEF):
Login with your Inderscience username and password:

 

    Username:        Password:         

Forgotten your password?


 

Want to subscribe?

A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

 

If you still need assistance, please email subs@inderscience.com