01891cas a2200253 a 4500 AALejournalIMF011974 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475505252 1018-5941 BD-DhAAL BD-DhAAL Klein, Nir. Estimating the Implicit Inflation Target of the South African Reserve Bank / Nir Klein. Washington, D.C. : International Monetary Fund, 2012. 1 online resource (16 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 paper applies a state-space approach to estimate the implicit inflation target of the South African Reserve Bank (SARB) since the adoption of the Inflation Targeting (IT) framework. The paper's findings are two. First, although the official inflation target range is 3.6 percent, in practice, the SARB seems to have aimed for the upper segment of the band (41.2 .6 percent) for most of the period, despite the substantial variation of the output gap. Second, the estimation results show that the implicit inflation target varied over time, and in recent years it has shifted toward the upper limit of the inflation target range. This perhaps suggests that since the outbreak of the financial crisis in 2008, the SARB's tolerance for higher inflation has somewhat increased to better support economic activity. Mode of access: Internet South Africa imf IMF Working Papers; Working Paper ; No. 2012/177 Full text available on IMF http://elibrary.imf.org/view/journals/001/2012/177/001.2012.issue-177-en.xml IMF e-Library