South Africa's Inflation Expectations Stable Post-2008 Crisis, Luck or Policy?
The Phillips curve in South Africa has changed over time, with inflation persistence and unemployment rates shifting. The slope of the Phillips curve has flattened since the mid-2000s, similar to other advanced countries. Inflation persistence increased from 1994 to 2001, remained steady until 2008, and then decreased. After 2008, inflation expectations became more stable, possibly due to luck rather than just good policy.