01840cas a2200241 a 4500 AALejournalIMF011252 230101c9999 xx r poo 0 0eng d 5.00 USD 9781463902155 1018-5941 BD-DhAAL BD-DhAAL Klein, Nir. South Africa : The Cyclical Behavior of the Markups and its Implications for Monetary Policy / Nir Klein. Washington, D.C. : International Monetary Fund, 2011. 1 online resource (22 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 The study looks at the cyclical behavior of the markups and assesses its impact on inflation dynamics. The analysis finds that the aggregate level of the private sector's markup is relatively high, thus pointing to the lack of strong competition in South Africa's product markets. Additionally, the results suggest that the markups tend to move in a countercyclical manner, with a short-term positive impact on inflation. This implies that the countercyclical pattern of the markups is one factor among others that contribute to the relatively weak output gap-inflation co-movement. In the context of South Africa's inflation targeting framework, the counter-cyclical markups may also generate an asymmetric response of monetary policy to the fluctuations in economic activity. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2011/204 Full text available on IMF http://elibrary.imf.org/view/journals/001/2011/204/001.2011.issue-204-en.xml IMF e-Library