Economics, Econometrics and Finance
4 years ago

Monetary Policy Response to Price Shocks Impacts Inflation Targeters

SSRN Electronic Journal
Monetary Policy and Relative Price Shocks in South Africa and Other Inflation Targeters
Alfredo Cuevas, Secil Topak

Paper Summary

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Monetary authorities in countries like South Africa adjust their policies to control the impact of price changes on inflation. Different central banks react differently to price shocks, depending on how resilient their economies are to these shocks. The broader economic context plays a crucial role in shaping these responses.