Testing for asymmetries in monetary aggregates

Abstract

The thesis comprises of four articles with the common theme of examining asymmetries within South African monetary aggregates with the intention of examining whether the South African Reserve Bank's (SARB) inflation target regime of 3-6 percent (1) is the most efficient and effective inflation target range which monetary policy can chose (2) has resulted in the maximization of economic growth gains or, similarly, in the minimization of economic growth losses; and (3) whether unemployment is affected by the inflation targeting regime via improvements in the levels of economic growth. In pursuing this objective we make use various regime-switching econometric models.