Economics, Econometrics and Finance
8 years ago

Money shocks in South Africa trigger inflation and monetary policy response.

SSRN Electronic Journal
Inflation, Money Demand, and Purchasing Power Parity in South Africa
Gunnar Jönsson

Paper Summary

Related papers

Economics, Econometrics and Finance
4 years ago

Countries with high inflation may face weak currencies, impacting global trade.

Macroeconomic Analysis
Public Finance
Infrastructure Impact
2 views
Economics, Econometrics and Finance
4 years ago

Purchasing Power Parity Theory Challenged: Real Exchange Rates Reveal True Competitiveness

Macroeconomic Trends
2 views
Economics, Econometrics and Finance
8 years ago

Exchange Rates Determined by Unique Variables, Impacting International Trade Competitiveness

Macroeconomic Analysis
International Finance
Infrastructure Impact
1 view

The study found that in South Africa, changes in the exchange rate affect prices, but not real output. Money supply shocks impact real output before causing inflation. Both types of shocks prompt quick adjustments in interest rates.