Rand volatility and inflation in South Africa

  title={Rand volatility and inflation in South Africa},
  author={Azwifaneli Innocentia Nemushu},
The floating exchange rate regime, coupled with a more open trade policy and the growth in imports, leaves South Africa vulnerable to the effects of exchange rate behaviour on import, producer and consumer prices, which all contribute to inflation. Given the central role that inflation targeting occupies in South Africa’s monetary policy, this paper examines the effect of exchange rate shocks on consumer prices using monthly data covering the period January 1994 to December 2013. Consistent… CONTINUE READING