Rossouw, J., Padayachee, V. and Joubert, F. (2009). Inflation credibility surveys in inflation-targeting countries: any lessons? School of Development Studies Working Paper No 55.The main aim of this paper is to compare inflation credibility surveys in three countries targeting inflation. This is done by comparing the findings of such surveys in New Zealand, South Africa and Sweden. Although 261 countries targeted inflation, inflation credibility surveys are undertaken only in these three countries.
The comparison shows that an acceleration in the rate of inflation between 2006 and 2008 eroded domestic and international inflation credibility. In due course the influence of a declining rate of inflation (disinflation) on inflation credibility will be tested. The final conclusion is that an international alignment of inflation credibility surveys is a requirement for a conclusive international comparison of the results of such surveys.
JEL Classifications: E31, E 52, E58
Keywords: Inflation; inflation credibility; inflation credibility barometer; inflation targeting; inflation-targeting countries; monetary policy; sampling; surveys
Professor Vishnu Padayachee
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