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What is Asymmetric Effect of Oil Prices On Inflation in So about?

This study investigates the asymmetric effects of oil prices on inflation in South Africa using econometric methods such as NARDL and ECM. It finds that positive changes in oil prices have a negative impact on inflation in the short run, while negative changes lead to a positive impact, with a long-run adjustment speed of 1.71%. The study recommends diversifying oil imports to mitigate vulnerability to price shocks and supply disruptions.

Author

fulufhelo nenungwi

Language

EN