The long-run impact of inflation in South Africa

Show simple item record Amusa, Kafayat Gupta, Rangan Karolia, Shaakira Simo-Kengne, Beatrice Desiree 2013-11-11T11:45:54Z 2013-11-11T11:45:54Z 2013-09
dc.description.abstract This paper evaluates the hypothesis of long-run super-neutrality of money (LRSN) within the context of the South African economy. The long-run impact of inflation on the interest rate and subsequently, output is estimated by employing a trivariate structural vector autoregression model, using quarterly data for the period of 1960:1 to 2010:1. The estimation results suggest that the hypothesis of LRSN cannot be rejected, thereby suggesting that monetary policy in South Africa cannot be used to solve the large and persistent unemployment problem in South Africa, which is understandable, since unemployment is inherently structural and is due to skills-shortage. This is further supported by our one of our other results which shows that significant long-run impact on output is obtained from technological improvements. en_US
dc.description.librarian hb2013 en_US
dc.description.uri en_US
dc.identifier.citation Amusa, K, Gupta, R, Karolia, S & Simo-Kengne, BD 2013, 'The long-run impact of inflation in South Africa', Journal of Policy Modeling, vol. 35, no. 5, pp. 798-812. en_US
dc.identifier.issn 0161-8938 (print)
dc.identifier.issn 1873-8060 (online)
dc.identifier.other 10.1016/j.jpolmod.2011.05.001
dc.language.iso en en_US
dc.publisher Elsevier en_US
dc.rights © 2013 Elsevier. All rights reserved. Notice : this is the author’s version of a work that was accepted for publication in Journal of Policy Modeling. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Journal of Policy Modeling, vol.35, no. 5, 2013, doi : 10.1016/j.jpolmod.2011.05.001 en_US
dc.subject Money superneutrality en_US
dc.subject Structural vector autoregression en_US
dc.title The long-run impact of inflation in South Africa en_US
dc.type Postprint Article en_US

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