Exchange Rate Volatility and Pass-Through to Inflation in South Africa /

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 vo...

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প্রধান লেখক: Miyajima, Ken
বিন্যাস: পত্রিকা
ভাষা:English
প্রকাশিত: Washington, D.C. : International Monetary Fund, 2019.
মালা:IMF Working Papers; Working Paper ; No. 2019/277
অনলাইন ব্যবহার করুন:Full text available on IMF
বিবরন
সংক্ষিপ্ত: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.
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দৈহিক বর্ননা:1 online resource (27 pages)
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