Monetary Policy Credibility and Inflation Expectations: Exploring an unconventional channel in South Africa

2021 ◽  
Vol 16 (3) ◽  
pp. 305-325
Author(s):  
Sandisiwe Abongile Bom ◽  
Sibanisezwe Alwyn Khumalo
Keyword(s):  
South Africa ◽  
Monetary Policy ◽  
Inflation Expectations ◽  
Policy Credibility

scholarly journals The Monetary Policy Credibility Channel and the Amplification Effects in a Semi-structural Model

2020 ◽  
Vol 20 (201) ◽  
Author(s):  
Thitipat Chansriniyom ◽  
Natan Epstein ◽  
Valeriu Nalban
Keyword(s):  
Monetary Policy ◽  
Structural Model ◽  
Inflation Expectations ◽  
Extended Model ◽  
Inflation Target ◽  
Asymmetric Effects ◽  
Policy Frameworks ◽  
Integrated Policy ◽  
Policy Credibility ◽  
Central Bank Credibility

The paper extends a standard semi-structural model to account for nonlinear and asymmetric effects of monetary policy credibility. In our setting, central bank credibility is proportional to the deviation of inflation expectations from the announced inflation target, with positive deviations being more costly compared to negative ones. A loss in policy credibility as a result of shocks leads to a more persistent, backward-looking inflation process, and is associated with lower output. We find that the extended model with credibility effects matches well the key macroeconomic data over specific past episodes for Indonesia and Philippines and consider its adaptation to integrated policy frameworks as an area for further exploration.

scholarly journals Monetary policy and heterogeneous inflation expectations in South Africa

2015 ◽  
Vol 45 ◽  
pp. 109-117 ◽  
Author(s):  
Alain Kabundi ◽  
Eric Schaling ◽  
Modeste Some
Keyword(s):  
South Africa ◽  
Monetary Policy ◽  
Inflation Expectations

Credit Restriction or Economic Growth?

2019 ◽  
pp. 45-54
Author(s):  
E.Y. Sokolova ◽  
A.S. Tanasova
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Domestic Demand ◽  
Retirement Age ◽  
Inflation Expectations ◽  
Negative Consequences ◽  
Credit Restriction

At the end of 2018 — the very beginning of 2019 Russia faced negative consequences of the economic measures that took place in 2018, such as the retirement age rising, tightening sanctions against Russia, VAT rising which caused increased inflation expectations of people. The Bank of Russia increased the key rate in response. All these measures lead to decrease of domestic demand, and not stimulate economic growth. The article examines the possibility of using the monetary policy method of credit restriction to fulfil the presidential act to stimulate economic growth.

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