Does monetary policy react asymmetrically to exchange rate misalignments? Evidence for South Africa
This paper examines the impact of exchange rates on the monetary policy conduct of South Africa’s central bank (SARB). We also examine whether the SARB’s responses depend on whether South Africa’s exchange rate is undervalued or not. To investigate these questions, we incorporate a real exchange rat...
Gespeichert in:
| Veröffentlicht in: | Empirical economics 2020-04, Vol.58 (4), p.1639-1658 |
|---|---|
| Hauptverfasser: | , |
| Format: | Artikel |
| Sprache: | eng |
| Schlagworte: | |
| Online-Zugang: | Volltext |
| Tags: |
Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
|
| container_end_page | 1658 |
|---|---|
| container_issue | 4 |
| container_start_page | 1639 |
| container_title | Empirical economics |
| container_volume | 58 |
| creator | Mateane, Lebogang Proaño, Christian R. |
| description | This paper examines the impact of exchange rates on the monetary policy conduct of South Africa’s central bank (SARB). We also examine whether the SARB’s responses depend on whether South Africa’s exchange rate is undervalued or not. To investigate these questions, we incorporate a real exchange rate misalignment term into a forward-looking Taylor-type policy rule. We find empirical evidence supporting the hypothesis that the SARB responds asymmetrically to undervalued real exchange rates. Finally, a general result is that the SARB allocates more weight towards expected inflation stabilization, a lower weight towards output gap stabilization and the lowest weight towards the exchange rate. |
| doi_str_mv | 10.1007/s00181-018-1595-4 |
| format | Article |
| fullrecord | <record><control><sourceid>proquest_cross</sourceid><recordid>TN_cdi_proquest_journals_2137639404</recordid><sourceformat>XML</sourceformat><sourcesystem>PC</sourcesystem><sourcerecordid>2137639404</sourcerecordid><originalsourceid>FETCH-LOGICAL-c381t-f3196b2f67a1c6b9ea451d2da65b5c54a154fa18d1e6cb49bc9b9a29a2cfc9ea3</originalsourceid><addsrcrecordid>eNp1kE9LxDAQxYMouK5-AG8Bz9VMk7TNSZZ1_QMLHtRzSNNkt0vbrElW7Lc3SwVPwvDm8n4zvIfQNZBbIKS8C4RABVmSDLjgGTtBM2CUZ5XI4RTNCC3LrKQ0P0cXIewIIbTibIb0gzMB924wUfkR713X6hF7o3TEKox9b6Jvteq6EUeHzbfeqmFjsFfR4L4Nqms3Q2-GGO7x6qttzKANts7jN3eIW7ywR_gSnVnVBXP1u-fo43H1vnzO1q9PL8vFOtO0gphZCqKoc1uUCnRRC6MYhyZvVMFrrjlTwJlVUDVgCl0zUWtRC5Wn0VYnN52jm-nu3rvPgwlR7tzBD-mlzIGWBRWMsOSCyaW9C8EbK_e-7VN4CUQeu5RTlzKJPHYpj0w-MSF5U37_d_l_6AdQmXja</addsrcrecordid><sourcetype>Aggregation Database</sourcetype><iscdi>true</iscdi><recordtype>article</recordtype><pqid>2137639404</pqid></control><display><type>article</type><title>Does monetary policy react asymmetrically to exchange rate misalignments? Evidence for South Africa</title><source>PAIS Index</source><source>SpringerLink Journals</source><source>Business Source Complete</source><creator>Mateane, Lebogang ; Proaño, Christian R.</creator><creatorcontrib>Mateane, Lebogang ; Proaño, Christian R.</creatorcontrib><description>This paper examines the impact of exchange rates on the monetary policy conduct of South Africa’s central bank (SARB). We also examine whether the SARB’s responses depend on whether South Africa’s exchange rate is undervalued or not. To investigate these questions, we incorporate a real exchange rate misalignment term into a forward-looking Taylor-type policy rule. We find empirical evidence supporting the hypothesis that the SARB responds asymmetrically to undervalued real exchange rates. Finally, a general result is that the SARB allocates more weight towards expected inflation stabilization, a lower weight towards output gap stabilization and the lowest weight towards the exchange rate.</description><identifier>ISSN: 0377-7332</identifier><identifier>EISSN: 1435-8921</identifier><identifier>DOI: 10.1007/s00181-018-1595-4</identifier><language>eng</language><publisher>Berlin/Heidelberg: Springer Berlin Heidelberg</publisher><subject>Banking ; Central banks ; Econometrics ; Economic models ; Economic theory ; Economic Theory/Quantitative Economics/Mathematical Methods ; Economics ; Economics and Finance ; Finance ; Foreign exchange rates ; Inflation ; Insurance ; Management ; Monetary policy ; Rules ; Stabilization ; Statistics for Business</subject><ispartof>Empirical economics, 2020-04, Vol.58 (4), p.1639-1658</ispartof><rights>Springer-Verlag GmbH Germany, part of Springer Nature 2018</rights><rights>Empirical Economics is a copyright of Springer, (2018). All Rights Reserved.</rights><lds50>peer_reviewed</lds50><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c381t-f3196b2f67a1c6b9ea451d2da65b5c54a154fa18d1e6cb49bc9b9a29a2cfc9ea3</citedby><cites>FETCH-LOGICAL-c381t-f3196b2f67a1c6b9ea451d2da65b5c54a154fa18d1e6cb49bc9b9a29a2cfc9ea3</cites><orcidid>0000-0002-5148-7635</orcidid></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><linktopdf>$$Uhttps://link.springer.com/content/pdf/10.1007/s00181-018-1595-4$$EPDF$$P50$$Gspringer$$H</linktopdf><linktohtml>$$Uhttps://link.springer.com/10.1007/s00181-018-1595-4$$EHTML$$P50$$Gspringer$$H</linktohtml><link.rule.ids>314,776,780,27843,27901,27902,41464,42533,51294</link.rule.ids></links><search><creatorcontrib>Mateane, Lebogang</creatorcontrib><creatorcontrib>Proaño, Christian R.</creatorcontrib><title>Does monetary policy react asymmetrically to exchange rate misalignments? Evidence for South Africa</title><title>Empirical economics</title><addtitle>Empir Econ</addtitle><description>This paper examines the impact of exchange rates on the monetary policy conduct of South Africa’s central bank (SARB). We also examine whether the SARB’s responses depend on whether South Africa’s exchange rate is undervalued or not. To investigate these questions, we incorporate a real exchange rate misalignment term into a forward-looking Taylor-type policy rule. We find empirical evidence supporting the hypothesis that the SARB responds asymmetrically to undervalued real exchange rates. Finally, a general result is that the SARB allocates more weight towards expected inflation stabilization, a lower weight towards output gap stabilization and the lowest weight towards the exchange rate.</description><subject>Banking</subject><subject>Central banks</subject><subject>Econometrics</subject><subject>Economic models</subject><subject>Economic theory</subject><subject>Economic Theory/Quantitative Economics/Mathematical Methods</subject><subject>Economics</subject><subject>Economics and Finance</subject><subject>Finance</subject><subject>Foreign exchange rates</subject><subject>Inflation</subject><subject>Insurance</subject><subject>Management</subject><subject>Monetary policy</subject><subject>Rules</subject><subject>Stabilization</subject><subject>Statistics for Business</subject><issn>0377-7332</issn><issn>1435-8921</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2020</creationdate><recordtype>article</recordtype><sourceid>7TQ</sourceid><sourceid>BENPR</sourceid><recordid>eNp1kE9LxDAQxYMouK5-AG8Bz9VMk7TNSZZ1_QMLHtRzSNNkt0vbrElW7Lc3SwVPwvDm8n4zvIfQNZBbIKS8C4RABVmSDLjgGTtBM2CUZ5XI4RTNCC3LrKQ0P0cXIewIIbTibIb0gzMB924wUfkR713X6hF7o3TEKox9b6Jvteq6EUeHzbfeqmFjsFfR4L4Nqms3Q2-GGO7x6qttzKANts7jN3eIW7ywR_gSnVnVBXP1u-fo43H1vnzO1q9PL8vFOtO0gphZCqKoc1uUCnRRC6MYhyZvVMFrrjlTwJlVUDVgCl0zUWtRC5Wn0VYnN52jm-nu3rvPgwlR7tzBD-mlzIGWBRWMsOSCyaW9C8EbK_e-7VN4CUQeu5RTlzKJPHYpj0w-MSF5U37_d_l_6AdQmXja</recordid><startdate>20200401</startdate><enddate>20200401</enddate><creator>Mateane, Lebogang</creator><creator>Proaño, Christian R.</creator><general>Springer Berlin Heidelberg</general><general>Springer Nature B.V</general><scope>AAYXX</scope><scope>CITATION</scope><scope>3V.</scope><scope>7TQ</scope><scope>7WY</scope><scope>7WZ</scope><scope>7XB</scope><scope>87Z</scope><scope>8AO</scope><scope>8BJ</scope><scope>8FK</scope><scope>8FL</scope><scope>ABUWG</scope><scope>AFKRA</scope><scope>BENPR</scope><scope>BEZIV</scope><scope>CCPQU</scope><scope>DHY</scope><scope>DON</scope><scope>DWQXO</scope><scope>FQK</scope><scope>FRNLG</scope><scope>F~G</scope><scope>JBE</scope><scope>K60</scope><scope>K6~</scope><scope>K8~</scope><scope>L.-</scope><scope>M0C</scope><scope>PHGZM</scope><scope>PHGZT</scope><scope>PKEHL</scope><scope>PQBIZ</scope><scope>PQBZA</scope><scope>PQEST</scope><scope>PQQKQ</scope><scope>PQUKI</scope><scope>PRINS</scope><scope>Q9U</scope><orcidid>https://orcid.org/0000-0002-5148-7635</orcidid></search><sort><creationdate>20200401</creationdate><title>Does monetary policy react asymmetrically to exchange rate misalignments? Evidence for South Africa</title><author>Mateane, Lebogang ; Proaño, Christian R.</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c381t-f3196b2f67a1c6b9ea451d2da65b5c54a154fa18d1e6cb49bc9b9a29a2cfc9ea3</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2020</creationdate><topic>Banking</topic><topic>Central banks</topic><topic>Econometrics</topic><topic>Economic models</topic><topic>Economic theory</topic><topic>Economic Theory/Quantitative Economics/Mathematical Methods</topic><topic>Economics</topic><topic>Economics and Finance</topic><topic>Finance</topic><topic>Foreign exchange rates</topic><topic>Inflation</topic><topic>Insurance</topic><topic>Management</topic><topic>Monetary policy</topic><topic>Rules</topic><topic>Stabilization</topic><topic>Statistics for Business</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Mateane, Lebogang</creatorcontrib><creatorcontrib>Proaño, Christian R.</creatorcontrib><collection>CrossRef</collection><collection>ProQuest Central (Corporate)</collection><collection>PAIS Index</collection><collection>ABI/INFORM Collection</collection><collection>ABI/INFORM Global (PDF only)</collection><collection>ProQuest Central (purchase pre-March 2016)</collection><collection>ABI/INFORM Global (Alumni Edition)</collection><collection>ProQuest Pharma Collection</collection><collection>International Bibliography of the Social Sciences (IBSS)</collection><collection>ProQuest Central (Alumni) (purchase pre-March 2016)</collection><collection>ABI/INFORM Collection (Alumni Edition)</collection><collection>ProQuest Central (Alumni Edition)</collection><collection>ProQuest Central UK/Ireland</collection><collection>ProQuest Central</collection><collection>Business Premium Collection</collection><collection>ProQuest One Community College</collection><collection>PAIS International</collection><collection>PAIS International (Ovid)</collection><collection>ProQuest Central Korea</collection><collection>International Bibliography of the Social Sciences</collection><collection>Business Premium Collection (Alumni)</collection><collection>ABI/INFORM Global (Corporate)</collection><collection>International Bibliography of the Social Sciences</collection><collection>ProQuest Business Collection (Alumni Edition)</collection><collection>ProQuest Business Collection</collection><collection>DELNET Management Collection</collection><collection>ABI/INFORM Professional Advanced</collection><collection>ABI/INFORM Global</collection><collection>ProQuest Central (New)</collection><collection>ProQuest One Academic (New)</collection><collection>ProQuest One Academic Middle East (New)</collection><collection>ProQuest One Business</collection><collection>ProQuest One Business (Alumni)</collection><collection>ProQuest One Academic Eastern Edition (DO NOT USE)</collection><collection>ProQuest One Academic</collection><collection>ProQuest One Academic UKI Edition</collection><collection>ProQuest Central China</collection><collection>ProQuest Central Basic</collection><jtitle>Empirical economics</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Mateane, Lebogang</au><au>Proaño, Christian R.</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Does monetary policy react asymmetrically to exchange rate misalignments? Evidence for South Africa</atitle><jtitle>Empirical economics</jtitle><stitle>Empir Econ</stitle><date>2020-04-01</date><risdate>2020</risdate><volume>58</volume><issue>4</issue><spage>1639</spage><epage>1658</epage><pages>1639-1658</pages><issn>0377-7332</issn><eissn>1435-8921</eissn><abstract>This paper examines the impact of exchange rates on the monetary policy conduct of South Africa’s central bank (SARB). We also examine whether the SARB’s responses depend on whether South Africa’s exchange rate is undervalued or not. To investigate these questions, we incorporate a real exchange rate misalignment term into a forward-looking Taylor-type policy rule. We find empirical evidence supporting the hypothesis that the SARB responds asymmetrically to undervalued real exchange rates. Finally, a general result is that the SARB allocates more weight towards expected inflation stabilization, a lower weight towards output gap stabilization and the lowest weight towards the exchange rate.</abstract><cop>Berlin/Heidelberg</cop><pub>Springer Berlin Heidelberg</pub><doi>10.1007/s00181-018-1595-4</doi><tpages>20</tpages><orcidid>https://orcid.org/0000-0002-5148-7635</orcidid></addata></record> |
| fulltext | fulltext |
| identifier | ISSN: 0377-7332 |
| ispartof | Empirical economics, 2020-04, Vol.58 (4), p.1639-1658 |
| issn | 0377-7332 1435-8921 |
| language | eng |
| recordid | cdi_proquest_journals_2137639404 |
| source | PAIS Index; SpringerLink Journals; Business Source Complete |
| subjects | Banking Central banks Econometrics Economic models Economic theory Economic Theory/Quantitative Economics/Mathematical Methods Economics Economics and Finance Finance Foreign exchange rates Inflation Insurance Management Monetary policy Rules Stabilization Statistics for Business |
| title | Does monetary policy react asymmetrically to exchange rate misalignments? Evidence for South Africa |
| url | https://sfx.bib-bvb.de/sfx_tum?ctx_ver=Z39.88-2004&ctx_enc=info:ofi/enc:UTF-8&ctx_tim=2025-02-20T09%3A54%3A38IST&url_ver=Z39.88-2004&url_ctx_fmt=infofi/fmt:kev:mtx:ctx&rfr_id=info:sid/primo.exlibrisgroup.com:primo3-Article-proquest_cross&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&rft.genre=article&rft.atitle=Does%20monetary%20policy%20react%20asymmetrically%20to%20exchange%20rate%20misalignments?%20Evidence%20for%20South%20Africa&rft.jtitle=Empirical%20economics&rft.au=Mateane,%20Lebogang&rft.date=2020-04-01&rft.volume=58&rft.issue=4&rft.spage=1639&rft.epage=1658&rft.pages=1639-1658&rft.issn=0377-7332&rft.eissn=1435-8921&rft_id=info:doi/10.1007/s00181-018-1595-4&rft_dat=%3Cproquest_cross%3E2137639404%3C/proquest_cross%3E%3Curl%3E%3C/url%3E&disable_directlink=true&sfx.directlink=off&sfx.report_link=0&rft_id=info:oai/&rft_pqid=2137639404&rft_id=info:pmid/&rfr_iscdi=true |