Energy
4 years ago

South African monetary policy influences demand side through inflation inertia.

RePEc: Research Papers in Economics
Examining asymmetric effects in the South African Philips curve: Evidence from logistic smooth transition regression (LSTR) models
Andrew Phiri

Paper Summary

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The study looked at how inflation and economic growth in South Africa are connected. They used a special math model to analyze data from 1970 to 2014. The results showed that South Africa's monetary policy affects inflation and people's expectations about prices, but doesn't have a big impact on how much goods and services are produced.