TY - BOOK ID - 46280338 TI - Exchange Rate, Second Round Effects and Inflation Processes : Evidence From South Africa AU - Ndou, Eliphas. AU - Gumata, Nombulelo. AU - Tshuma, Mthokozisi Mncedisi. PY - 2019 SN - 3030139328 303013931X PB - Cham : Springer International Publishing : Imprint: Palgrave Macmillan, DB - UniCat KW - Inflation (Finance) KW - Finance KW - Natural rate of unemployment KW - International economics. KW - Macroeconomics. KW - Public finance. KW - Finance, Public. KW - International finance. KW - Africa—Economic conditions. KW - International Economics. KW - Macroeconomics/Monetary Economics//Financial Economics. KW - Public Economics. KW - Public Finance. KW - International Finance. KW - African Economics. KW - International monetary system KW - International money KW - International economic relations KW - Cameralistics KW - Public finance KW - Currency question KW - Economics KW - Economic policy, Foreign KW - Economic relations, Foreign KW - Economics, International KW - Foreign economic policy KW - Foreign economic relations KW - Interdependence of nations KW - International economic policy KW - International economics KW - New international economic order KW - Economic policy KW - International relations KW - Economic sanctions KW - Public finances UR - https://www.unicat.be/uniCat?func=search&query=sysid:46280338 AB - This book focuses on the exchange rate pass-through (ERPT), second round effects and the inflation process in South Africa. The authors demonstrate that magnitudes of the second round effects of the exchange rate depreciation and oil price shocks depend on inflation regimes. The impact of positive oil price shocks on inflation is weakened by monetary policy credibility. Evidence shows the influence of oil price on unit labour costs and correlation between exchange rate changes and inflation has weakened. In addition, ERPT is reduced by low business and consumer confidence, high trade openness, low inflation and high exchange rate volatility which weaken real economic activity. Both monetary and fiscal policy credibility lowers the sizes of ERPT to inflation and inflation expectations. Fiscal policy via fuel levies, administered prices and public transport inflation channel impacts the responses of monetary policy to inflation shocks. The authors show that second round effects contribute very little to wage inflation following an exchange rate depreciation shock. Both lending rate and household consumption responds asymmetrical to repo rate changes. This book will appeal to policymakers, students, academics and analysts. ER -