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Estimating Sarb'S Policy Reaction Rule

Listed author(s):
  • Alberto Ortiz
  • Federico Sturzenegger

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. Copyright (c) 2007 The Authors. Journal compilation (c) 2007 Economic Society of South Africa.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1813-6982.2007.00146.x
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Article provided by Economic Society of South Africa in its journal South African Journal of Economics.

Volume (Year): 75 (2007)
Issue (Month): 4 (December)
Pages: 659-680

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Handle: RePEc:bla:sajeco:v:75:y:2007:i:4:p:659-680
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