 LOUD AND CLEAR? CAN WE HEAR WHEN THE SARB SPEAKS?Monique Reid and Stan Du Plessis () South African Journal of Economics, 2010, vol. 78, issue 3, 269-286 Abstract: 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. It follows international literature in constructing a numerical index that is used to reflect the information content of the SARB's communications, specifically the monetary policy statements that accompanied each of the MPC meetings since 2000. This method allows us to judge, systematically, the degree to which the MPC has communicated successfully, and the evolution of that success over the past nine years. We find evidence that the MPC has succeeded in signalling their likely future policy decision with consistency over this period. Date: 2010 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:sajeco:v:78:y:2010:i:3:p:269-286 Ordering information: This journal article can be ordered from Access Statistics for this article South African Journal of Economics is currently edited by Philip A. Black More articles in South African Journal of Economics from Economic Society of South Africa Contact information at EDIRC. |
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