Exchange Rate Volatility and Pass-Through to Inflation in South Africa
Author | : Mr.Ken Miyajima |
Publisher | : International Monetary Fund |
Total Pages | : 27 |
Release | : 2019-12-13 |
ISBN-10 | : 9781513521572 |
ISBN-13 | : 1513521578 |
Rating | : 4/5 (72 Downloads) |
Download or read book Exchange Rate Volatility and Pass-Through to Inflation in South Africa written by Mr.Ken Miyajima and published by International Monetary Fund. This book was released on 2019-12-13 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: Does the South African rand’s relatively large volatility affect inflation? To shed some light on this question, a standard estimation technique of exchange rate pass-through to inflation is extended to incorporate exchange rate volatility. Estimated results suggest that higher exchange rate volatility tends to increase core inflation but to a relatively limited extent in South Africa. The finding lends support to the policy of allowing the rand to float freely and work as a shock absorber, consistent with the nation’s successful inflation targeting regime.