Re-Examining the South African Reserve Bank’s Policy Reaction Function Using the NARDL Model

نویسندگان

چکیده

The 3–6 percent inflation target is a policy rule used by the South African Reserve Bank (SARB) to fulfil its statutory obligation of ensuring low and stable environment reaction function assesses how responds deviations from target. We rely on nonlinear autoregressive distributive lag (NARDL) models estimate asymmetric preferences which has during rising falling episodes inflation. Using quarterly data spanning 2002:q1 2021:q4, we functions using 7 disaggregated measures capture heterogeneity in formation price expectations. further segregate our into two sub-periods, corresponding pre-crisis post-crisis era, as robustness exercise. Overall, findings indicate that era SARB (i) become more responsive inflation, output fluctuations exchange rates (ii) responded aggressively than

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ژورنال

عنوان ژورنال: Managing global transitions

سال: 2023

ISSN: ['1581-6311', '1854-6935']

DOI: https://doi.org/10.26493/1854-6935.21.269-293