A Bayesian-Estimated Model of InflationTargeting in South Africa

 
Author/Editor: Harjes, Thomas ; Ricci, Luca Antonio
 
Publication Date: February 01, 2008
 
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Summary: This paper estimates a small dynamic macroeconomic model for the South African economy with Bayesian methods. The model is tailored to assessing the impact of domestic as well as external shocks on inflation within an inflation targeting framework, by incorporating forward-looking behavior of private agents and of the monetary authority. The model is able to display important empirical features of the monetary transmission mechanism that have been found in other studies. It helps to integrate the short-term inflation outlook into a consistent medium-term framework and to design the policy response for various shocks that affect inflation.
 
Series: Working Paper No. 08/48
Subject(s): Inflation targeting | South Africa | Inflation | Energy prices | Exchange rate instability | Demand

Author's Keyword(s): Monetary model | inflation targeting | Bayesian estimation
 
English
Publication Date: February 01, 2008
Format: Paper
Stock No: WPIEA2008048 Pages: 24
Price:
US$18.00 (Academic Rate:
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