E42

Monetary Systems; Standards; Regimes; Government and the Monetary System; Payment Systems

The monetary policy of the South African Reserve Bank: stance, communication and credibility

This paper analyses the evolution of the monetary policy stance, communication and credibility of the South African Reserve Bank (SARB) since 2000, when it adopted a flexible Inflation Targeting (IT) regime to facilitate the achievement of its price stability mandate. Empirical results indicate that the stance became accommodative after the global financial crisis of 2009, with a tendency of the implicit inflation target to increase, while after 2014 it turned tighter and the implicit target started declining.

Changes in the Liquidity Effect Over Time: Evidence from Four Monetary Policy Regimes

This paper employs a time-varying parameter vector autoregressive (TVP-VAR) model to establish the nature of the relationship between central bank liabilities and the overnight policy rate. Four countries with different monetary policy regimes were considered. It was found that a clear negative relationship between these variables exists only in the case of one regime, namely the reserve regime. This result indicates that the introduction of new operational frameworks for central banks have challenged the traditional model of monetary policy implementation.

Sources of Dualism in Modern Rationalist Thought: Implications for Islamic Economics

This paper follows on from the previous one in this series on the incursion of rationalist thought into Christendom. In this paper, I show how the sequence of socio-political events in Europe at the turn of the 16th century provided an opportunistic environment for rationalism to supplant religion as the dominant paradigm for human thought. It gave birth to the Scientific Revolution, the Enlightenment, and their nemesis, the Romantic Movement. All of them sought to assert the primacy of human agency in the process of knowledge generation.

Inflation Dynamics in a Dollarised Economy: The Case of Zimbabwe

This paper explores the dynamics of inflation in the dollarised Zimbabwean economy using the Autoregressive Distributed Lag Model (ARDL) with monthly data from 2009:1 to 2012:12. The main determinants of inflation were found to be the US dollar/South African rand exchange rate, international oil prices, inflation expectations and South African inflation rate. During the local currency era, inflation dynamics in Zimbabwe were explained by excess growth in money supply, changes in import and administered prices, unit labour costs and output (Chhibber, Cottani, Firuzabadi and Walton, 1989).

Talking to the inattentive public: How the media translates the Reserve Bank’s communications

Central bank communication is widely recognised as crucial to the implementation of monetary policy. This communication should enhance a central bank’s management of the inflation expectations of the financial markets as well as the general public — the latter being a part of the central bank’s audience that has received relatively little research attention.

Loud and Clear? Can we hear when the SARB speaks?

Inflation targeting is a forward-looking framework for monetary policy that has brought unprecedented transparency to the process of monetary policy. This paper aims to assess the degree to which the South African Reserve Bank’s (SARB) Monetary Policy Committee (MPC) has, since the introduction of inflation targeting, successfully communicated to the public its policy analysis, and, in particular, the expected future policy changes.

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