Template-Type: ReDIF-Paper 1.0
Author-Name: Alberto Ortiz
Author-Name: Federico Sturzenegger
Author-Name: Ashoka Mody
Title: Estimating SARB's Policy Reaction Rule
Abstract: This paper uses a Dynamic Stochastic General Equilibrium (DSGE) model to estimate the South African Reserve Bank’s (SARB) policy reaction rule. We find that the SARB has a stable rule very much in line with those estimated for Canada, UK, Australia and New Zealand. Relative to other emerging economies the policy reaction function of the SARB appears to be much more stable with a consistent anti-inflation bias, a somewhat larger weight on output and a very low weight on the exchange rate.
Creation-Date: 2008-05
Classification-JEL: C32, E52, F41, O57
Keywords: Monetary Policy Rules, Exchange Rates, Structural Estimation, Bayesian Analysis
Number: 14c
Handle: RePEc:glh:wpfacu:14c
File-Url: https://www.hks.harvard.edu/sites/default/files/centers/cid/files/publications/faculty-working-papers/165.pdf
File-Format: application/pdf