Monetary Policy Transparency and Financial Market Forecasts in South Africa

WPIEA2007123 Image
Price:  $18.00

Author/Editor: Vivek B. Arora
Release Date: © May, 2007
ISBN : 978-1-45186-687-2
Stock #: WPIEA2007123
English
Stock Status: Available

Languages and formats available

EnglishFrenchSpanishArabicRussianChinesePortuguese
PaperbackYes
PDFYes

Description

The transparency of monetary policy in South Africa has increased substantially since the end of the 1990s; but little empirical work has been done to examine the economic benefits of the increased transparency. This paper shows that, in recent years, South African private sector forecasters have become better able to forecast interest rates, are less surprised by reserve bank policy announcements, and are less diverse in the cross-sectional variety of their interest rate forecasts. In addition, there is some evidence that the accuracy of inflation forecasts has increased. The improvements in interest rate and inflation forecasts have exceeded those in real output forecasts, suggesting that increases in reserve bank transparency are likely to have played a role.

Taxonomy

Capital markets , Economic policy , Financial institutions and markets , Fiscal policy , Monetary policy , Transparency




More publications in this series: Working Papers


More publications by: Vivek B. Arora