n South African Journal of Economic and Management Sciences - Links or disconnect : a first consideration of inflation expectations and inflation credibility, with specific reference to South Africa : analysis of survey data
|Article Title||Links or disconnect : a first consideration of inflation expectations and inflation credibility, with specific reference to South Africa : analysis of survey data|
|© Publisher:||University of Pretoria|
|Journal||South African Journal of Economic and Management Sciences|
|Author||Jannie Rossouw, Vishnu Padayachee and Adel Bosch|
|Publication Date||Dec 2009|
|Pages||475 - 492|
|Keyword(s)||E31, E52, E58, Estimation, Inflation, Inflation credibility, Inflation expectations, Literature on inflation expectations, Monetary policy, Multinomial analysis and Surveys|
ISI Social Science
This paper compares international and domestic inflation expectations and inflation credibility, and hypothesises about a possible link or disconnect between inflation expectations and inflation credibility among South Africans. No similar tests have previously been performed using South African data, and there is also a general lack of domestic and international literature on any such possible link or disconnect. While research shows that inflation expectations are taken into account by all countries targeting inflation, inflation credibility is very seldom considered. Although the hypothesis is confirmed in certain instances, it is refuted by a disconnect between the inflation expectations and inflation credibility of male and female respondents in South Africa, which cannot be explained by available data.
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