Monetary policy shocks impact South Africa's economy more post-inflation targeting.
The study looked at how monetary policy affects the economy in South Africa from 1980 to 2012. They used a special model to analyze 177 economic factors and found that the economy responded slightly more to monetary policy after 2000. Demand shocks had a bigger impact on the economy than monetary policy or supply shocks. This suggests that the central bank in South Africa should play a more efficient role to improve economic stability.