European Parliament Library

Monetary Policy and Relative Price Shocks in South Africa and Other Inflation Targeters, Alfredo Cuevas, Secil Topak

Contributor
Abstract
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
Table Of Contents
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
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (27 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9786613825131

Library Locations

  • EP Library Luxembourg

    Rue du Fort Thüngen, Luxembourg, L-1313, LU
    Borrow
  • EP Library Brussels

    60 rue Wiertz, Brussels, B-1047, BE
    Borrow
  • EP Library Strasbourg

    7 Place Adrien Zeller, Allée du Printemps, Strasbourg, F-67070, FR
    Borrow