Inflation Dynamics in South Africa: The Role of Thresholds, Exchange Rate Pass-through and Inflation Expectations on Policy Trade-offs

Front Matter....Pages i-xlvi
Introduction....Pages 1-16
Front Matter....Pages 17-17
The Ball Approach to Disinflation Episodes, Output Costs and Sacrifice Ratios in South Africa....Pages 19-40
The Output and Inflation Trade-off in South Africa....Pages 41-59
Persistent Exchange Rate Volatility on the Taylor Curve....Pages 61-76
Inflation Volatility and Non-Linear Effects of Inflation Shocks....Pages 77-89
Exchange Rate Volatility Shock Effects on Inflation Volatility....Pages 91-98
Does the Volatility of the R/US$ Exchange Rate Threshold Exert Non-Linear Effects on Inflation?....Pages 99-111
Persistent and Non-Persistent Exchange Rate Depreciation Effects on Inflation....Pages 113-123
Relative Services Price Dispersion, Trend Inflation and Inflation Volatility....Pages 125-142
Front Matter....Pages 143-143
Negative Terms-of-Trade Shock, the Real Effective Exchange Rate and Repo Rate Adjustments....Pages 145-160
Do Fiscal Policy Variables Drive Inflation in the Same Direction?....Pages 161-172
What Would Inflation and Repo Rate Be in the Absence of Increased Government Expenditure?....Pages 173-179
Labour Productivity and Unit Labour Costs Impact on Inflation: What Are the Implications for Monetary Policy?....Pages 181-191
Labour Market Conditions, Positive Inflation Shocks and Policy Rate Responses....Pages 193-208
Front Matter....Pages 209-209
Does World Import Growth Amplify Domestic Inflation Responses to Inflationary Shocks?....Pages 211-227
Where Does the Exchange Rate Pass-Through to Import Price Inflation Threshold Lie?....Pages 229-244
GDP Growth Threshold and Asymmetric Exchange Rate Pass-Through to Import Prices....Pages 245-259
Inflation Rate and R/US$ Depreciation Shocks on Import Price Inflation: Inferences from Deviations from the 6 Per cent Inflation Rate....Pages 261-269
Front Matter....Pages 271-271
The Inflation–Finance–Growth Nexus: Where Does the Inflation Threshold Lie?....Pages 273-291
The Output Gap, Exchange Rate Depreciation Shock and Inflation: Non-Linear Effects and Implications for Monetary Policy....Pages 293-308
Front Matter....Pages 271-271
Do Economic Growth Regimes Impact the Pass-Through of Exchange Rate Shocks to Inflation?....Pages 309-321
GDP Growth Threshold and Non-linear Effects of Repo Rate Shocks....Pages 323-340
Asymmetric Effects of the Repo Rate and Inflation Rate Shocks on Economic Growth....Pages 341-349
Do Deteriorating Business Cycle Indicators and Tight Credit Conditions Affect the Repo Rate Adjustment to Positive Inflation Shock?....Pages 351-363
Rand/US Dollar Exchange Rate Pass-Through and the Inflation Environment....Pages 365-380
Sovereign Spreads and Non-linear Responses of Inflation to the R/US$ Exchange Rate Depreciation Shocks....Pages 381-395
Do Credit Regimes Play a Role in the Pass-Through of the Exchange Rate Depreciation Shocks to Inflation?....Pages 397-409
Front Matter....Pages 411-411
The Propagating Effects of Inflation Risk Factors and the Implications for the Inflation Outlook....Pages 413-427
Upside Risk Factors to the Inflation Outlook and Long-Term Inflation Expectations....Pages 429-453
Inflation Expectations, Adverse Aggregate Supply Shock and Long-Term Inflation Expectations....Pages 455-472
Wage Increases in Excess of 6 Per cent, Inflationary Dynamics and Expectations....Pages 473-499
Back Matter....Pages 501-525