The role of commodity prices in macroeconomic policy in South Africa

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Periodical article

Title:	The role of commodity prices in macroeconomic policy in South Africa
Authors:	Ocran, Matthew Kofi Biekpe, Nicholas
Year:	2007
Periodical:	South African Journal of Economics
Volume:	75
Issue:	2
Pages:	213-220
Language:	English
Geographic term:	South Africa
Subjects:	price policy commodities economic policy
External link:	https://onlinelibrary.wiley.com/doi/10.1111/j.1813-6982.2007.00120.x/pdf
Abstract:	This paper examines whether commodity prices can be used as signal for informing macroeconomic policy in South Africa using the new approach for testing Granger causality developed by H.Y. Toda and T. Yamamoto (1995). Evidence of causality from average gold price to interest rate, money, exchange rate and the consumer price index was observed. Again, evidence of causality was observed from metals price index to interest rate, money and exchange rate. The results suggest there is merit in using South Africa's average gold price and the metals price index of the International Monetary Fund as informational variables in setting monetary policy. Bibliogr., notes, ref., sum. [Journal abstract]