Monetary policy and food inflation in South Africa: A quantile regression analysis

Abdul-Aziz Iddrisu and Imhotep Alagidede ()

Food Policy, 2020, vol. 91, issue C

Abstract: Although optimal monetary policy stabilizes food inflation theoretically, empirical studies remain limited not only in the context of volumes and the estimation approaches, but are focused on selected advanced and emerging countries to the neglect of Africa where poverty and dominance of food in the consumption basket are more pronounced. We provide empirical evidence in the context of South Africa using quantile regressions. Rising food prices are destabilized even further by restrictive monetary policy; a finding that has ramifications for inflation targeting, especially given that a quarter of the country’s population is food poor.

Keywords: Food Inflation; Monetary policy; Consumption basket; Poverty; Quantile regression (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jfpoli:v:91:y:2020:i:c:s0306919219306384

DOI: 10.1016/j.foodpol.2019.101816

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