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Measuring Inflation Credibility: Results Of A First Representative South African Sample

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  • Jannie Rossouw
  • Vishnu Padayachee

Abstract

This study reports the measurement of inflation credibility of a representative sample of the South African population in terms of an inflation credibility barometer. The barometer is an instrument measuring the degree of acceptance of the accuracy of historic inflation figures. These research results serve as a benchmark for South Africa, as similar measurement of a representative sample has not been undertaken before. The sampling results show little public understanding of the rate of inflation and its measurement of average price increases experienced by an average household. As generally accepted international benchmarks for successful central‐bank communication strategies do not exist, the application of the methodology reported in this paper can improve the effectiveness of central bank communication aimed at improving the general knowledge about inflation.

Suggested Citation

  • Jannie Rossouw & Vishnu Padayachee, 2009. "Measuring Inflation Credibility: Results Of A First Representative South African Sample," South African Journal of Economics, Economic Society of South Africa, vol. 77(2), pages 314-331, June.
    • Handle: RePEc:bla:sajeco:v:77:y:2009:i:2:p:314-331
    DOI: 10.1111/j.1813-6982.2009.01209.x
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    References listed on IDEAS

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    1. Alan S. Blinder & Michael Ehrmann & Marcel Fratzscher & Jakob De Haan & David-Jan Jansen, 2008. "Central Bank Communication and Monetary Policy: A Survey of Theory and Evidence," Journal of Economic Literature, American Economic Association, vol. 46(4), pages 910-945, December.
    2. Alan S. Blinder & Michael Ehrmann & Marcel Fratzscher & Jakob De Haan & David-Jan Jansen, 2008. "Central Bank Communication and Monetary Policy: A Survey of Theory and Evidence," Journal of Economic Literature, American Economic Association, vol. 46(4), pages 910-945, December.
    3. Gj Kershoff & Bw Smit, 2002. "Conducting Inflation Expectation Surveys in South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 70(3), pages 205-212, March.
    4. Eric Leeper, 2003. "An "Inflation Reports" Report," NBER Working Papers 10089, National Bureau of Economic Research, Inc.
    5. Jannie Rossouw & Fanie Joubert, 2005. "Supporting An Inflation Targeting Policy With The Measurement Of Inflation Credibility," South African Journal of Economics, Economic Society of South Africa, vol. 73(2), pages 321-336, June.
    6. repec:pri:cepsud:161blinder is not listed on IDEAS
    7. Vishnu Padayachee, 2001. "Central Bank transformation in a globalized world: the Reserve Bank in post-apartheid South Africa," Journal of International Development, John Wiley & Sons, Ltd., vol. 13(6), pages 741-765.
    8. Bank for International Settlements, 2008. "Monetary policy decisions: preparing the inputs and communicating the outcomes," BIS Papers, Bank for International Settlements, number 37.
    9. Jonung, Lars, 1981. "Perceived and Expected Rates of Inflation in Sweden," American Economic Review, American Economic Association, vol. 71(5), pages 961-968, December.
    10. Michael F. Bryan & Guhan Venkatu, 2001. "The demographics of inflation opinion surveys," Economic Commentary, Federal Reserve Bank of Cleveland, issue Oct.
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    Cited by:

    1. James Heintz & Léonce Ndikumana, 2010. "Working Paper 108 - Is there a Case for Formal Inflation Targeting in Sub-Saharan Africa?," Working Paper Series 245, African Development Bank.
    2. Stan du Plessis, 2014. "Targeting core inflation in emerging market economies," Working Papers 23/2014, Stellenbosch University, Department of Economics.
    3. James Heintz & Léonce Ndikumana, 2010. "Is There a Case for Formal Inflation Targeting in Sub-Saharan Africa?," Working Papers wp218, Political Economy Research Institute, University of Massachusetts at Amherst.

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