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The evolution of central bank communication as experienced by the South Africa Reserve Bank

Author

Listed:
  • Gideon du Rand
  • Ruan Erasmus
  • Hylton Hollander
  • Monique Reid
  • Dawie van Lill

Abstract

Communication has evolved into a cornerstone of central bank design and policy implementation. The South African Reserve Bank has been proactive in this regard as well – most notably with the adoption of inflation targeting in 2001. Using novel text-mining techniques, we evaluate the communication of the SARB, as presented via public speeches and monetary policy committee (MPC) statements, in the context of historical developments from 1994 to 2020. Our analysis focuses on the volume, complexity, scope, and sentiment of communication. We conclude that MPC statements are consistently and narrowly focused on the mandate, whereas speeches capture more detail about how the thinking of SARB policy makers evolves over time. In both cases, communication serves as a channel to reduce uncertainty and build credibility in the public domain.

Suggested Citation

  • Gideon du Rand & Ruan Erasmus & Hylton Hollander & Monique Reid & Dawie van Lill, 2021. "The evolution of central bank communication as experienced by the South Africa Reserve Bank," Economic History of Developing Regions, Taylor & Francis Journals, vol. 36(2), pages 282-312, May.
    • Handle: RePEc:taf:rehdxx:v:36:y:2021:i:2:p:282-312
    DOI: 10.1080/20780389.2021.1925106
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    Cited by:

    1. Eugene Msizi Buthelezi, 2023. "Impact of Money Supply in Different States of Inflation and Economic Growth in South Africa," Economies, MDPI, vol. 11(2), pages 1-22, February.
    2. Arnold Segawa, 2021. "Causality Analysis of South Africa Reserve Bank’s Monetary Policy Statements and Communication," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 10(4), pages 55-74, October.

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