nach oben

Erschienen in:

2019 | OriginalPaper | Buchkapitel

19. Is There Evidence of the Trade-Off in Output and Inflation Volatilities in South Africa?

verfasst von : Eliphas Ndou, Thabo Mokoena

Erschienen in: Inequality, Output-Inflation Trade-Off and Economic Policy Uncertainty

Verlag: Springer International Publishing

Einloggen

Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.

search-config

KI-gestützte Suche

Aus

Abstract

Evidence shows there is trade-off between output and inflation volatilities. The volatilities of inflation and the output were minimised in the inflation-targeting period. Evidence reveals that periods when the macroeconomic performance was superior coincided with the periods of minimal volatilities in both the inflation rates and the output gap.

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Vorheriges Kapitel Do Positive Bank Concentration Shocks Impact Employment in South Africa?

Nächstes Kapitel To What Extent Does the Output-Inflation Trade-Off Exist in South Africa and Is It Impacted by the Six Per Cent Inflation Threshold?

Taylor (1979), Chatterjee (2002), Olson et al. (2012), Ndou et al. (2013), and Ndou and Gumata (2017).

Moreover, theoretically the optimal point on the output-inflation efficiency frontier can only be achieved when a central banker has the independence to set policy without political backlash. Hence, discretionary policymaking translates to the central banker being able to choose the appropriate inflation variability aversion parameter to solve the minimisation problem and make independent policy decisions with a positive influence on a country’s stability and growth.

The two-year correlations approach is consistent with monetary policy being implemented in a forward looking way, such that the interest rates affect the economy in 18–24 months.

Chatterjee, S. (2002). The Taylor curve and the unemployment-inflation trade off. Business Review. Federal Reserve Bank of Philadelphia. www.phil.frb.org/researchreview/2002/q3/brq302sc.pdf.

Friedman, M. (2006). Tradeoffs in monetary policy. Paper presented as Unpublished Manuscript. Stanford University. www.nber.org/chapters/c0074.pdf.

King, M. (2013). Monetary policy: Many targets, many instruments. Where do we stand? Remarks at the IMF Conference on ‘Rethinking Macro Policy II: First Steps and Early Lessons’, Washington, DC.

Ndou, E., & Gumata, N. (2017). Inflation dynamics in South Africa: The role of thresholds exchange rate pass-through and inflation expectations on policy trade-offs. Cham: Palgrave Macmillan.CrossRef

Ndou, E., Gumata, N., Ncube, M., & Olson, E. (2013). An empirical estimation of the Taylor curve in South Africa (African Development Bank Working Paper No. 183). https://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/Working_Paper_189_An_Empirical_Investigation_of_the_Taylor_Curve_in_South_Africa.pdf.

Taylor, J. B. (1979). Estimation and control of a macroeconomic model with rational expectations. Econometrica, 47(5), 1267–1286.CrossRef

Titel: Is There Evidence of the Trade-Off in Output and Inflation Volatilities in South Africa?
verfasst von: Eliphas Ndou
Thabo Mokoena
Verlag: Springer International Publishing
Buch: Inequality, Output-Inflation Trade-Off and Economic Policy Uncertainty
Print ISBN: 978-3-030-19802-2

Electronic ISBN: 978-3-030-19803-9

Copyright-Jahr: 2019
DOI: https://doi.org/10.1007/978-3-030-19803-9_19