Go to AfricaBib home

Go to AfricaBib home Africana Periodical Literature Go to database home

bibliographic database
Line
Previous page New search

The free AfricaBib App for Android is available here

Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Interest rate pass-through in the Common Monetary Area of the SACU countries
Authors:Sander, HaraldISNI
Kleimeier, StefanieISNI
Year:2006
Periodical:South African Journal of Economics
Volume:74
Issue:2
Pages:215-229
Language:English
Geographic terms:Lesotho
Namibia
South Africa
Swaziland - Eswatini
Subjects:monetary policy
Common Monetary Area
interest rates
banking
External link:https://onlinelibrary.wiley.com/doi/10.1111/j.1813-6982.2006.00073.x/pdf
Abstract:Lesotho, Namibia, South Africa and Swaziland form a Common Monetary Area (CMA), but in contrast to the European Monetary Union the four CMA countries do not have a supranational central bank conducting monetary policy for the region. Rather, the four countries conduct a quasi currency board arrangement with the South African Rand as the anchor currency. This leads to a number of questions with respect to the workings of monetary policy in these countries: how does the monetary transmission process work in these four countries? In what ways do national monetary policy and its effects depend on the anchor country's monetary policy? How similar are the responses to monetary policy impulses across the member countries? This paper addresses these three issues with respect to changing financial market structures in the CMA. It investigates the interest rate pass-through in the four CMA countries, employing an empirical pass-through (PT) model that allows for thresholds, asymmetric adjustment, and structural changes. The paper shows that CMA bank lending markets exhibit quite some degree of homogenization as the pass-through is often fast and complete. Deposit markets are somewhat more heterogeneous by showing differing degrees of interest rate stickiness and asymmetric adjustment. Policymakers should therefore be concerned about imperfect competition which may be at the heart of the remaining cross-country differences in monetary transmission in the CMA. App., bibliogr., note, sum. [Journal abstract]
Views
Cover