Original Research

Links or disconnect: a first consideration of inflation expectations and inflation credibility, with specific reference to South Africa

Jannie Rossouw, Vishnu Padayachee, Adel Bosch
South African Journal of Economic and Management Sciences | Vol 12, No 4 | a190 | DOI: https://doi.org/10.4102/sajems.v12i4.190 | © 2011 Jannie Rossouw, Vishnu Padayachee, Adel Bosch | This work is licensed under CC Attribution 4.0
Submitted: 20 April 2011 | Published: 26 April 2011

About the author(s)

Jannie Rossouw, SA Reserve Bank, South Africa
Vishnu Padayachee, University of Kwazulu-Natal, South Africa
Adel Bosch, SA Reserve Bank, South Africa

Full Text:

PDF (610KB)

Share this article

Bookmark and Share

Abstract

This paper compares international and domestic inflation expectations and inflation credibility, and hypothesises about a possible link or disconnect between inflation expectations and inflation credibility among South Africans.  No similar tests have previously been performed using South African data, and there is also a general lack of domestic and international literature on any such possible link or disconnect.  While research shows that inflation expectations are taken into account by all countries targeting inflation, inflation credibility is very seldom considered.  Although the hypothesis is confirmed in certain instances, it is refuted by a disconnect between the inflation expectations and inflation credibility of male and female respondents in South Africa, which cannot be explained by available data.

Keywords

No related keywords in the metadata.

Metrics

Total abstract views: 954
Total article views: 2995

Reader Comments

Before posting a comment, read our privacy policy.

Post a comment (login required)

Crossref Citations

No related citations found.