01665cas a2200241 a 4500 AALejournalIMF001025 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451854473 1018-5941 BD-DhAAL BD-DhAAL Jonsson, Gunnar. Inflation, Money Demand, and Purchasing Power Parity in South Africa / Gunnar Jonsson. Washington, D.C. : International Monetary Fund, 1999. 1 online resource (28 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This empirical study for South Africa indicates that there exists a stable money demand type of relationship among domestic prices, broad money, real income, and interest rates, as well as a long-run relationship among domestic prices, foreign prices, and the nominal exchange rate. In the short run, shocks to the nominal exchange rate affect domestic prices but have virtually no impact on real output, while shocks to broad money have a temporary impact on real output before becoming inflationary. Both types of shocks seem to trigger a monetary policy response, since the short-term interest rate adjusts quickly. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1999/122 Full text available on IMF http://elibrary.imf.org/view/journals/001/1999/122/001.1999.issue-122-en.xml IMF e-Library