Gupta, Rangan; Uwilingiye, Josine - Department of Economics, Faculty of Economic and … - 2008
inflation. Using the Johansen (1991, 1995) technique, we estimate a log-log specification and a semi-log model of the above …-log money demand model. Our estimates suggest that the welfare cost of inflation for South Africa ranges between 0.34 percent … and 0.67 percent of GDP, for a band of 3 to 6 percent of inflation. Thus, it seems that the SARB’s current inflation …