Epistora Journal of Economics and Financial Studies
Current Issue

This study examines the transmission mechanisms of monetary policy in emerging economies, focusing on inflation dynamics in Brazil, India, and South Africa. Using a structural vector autoregression (SVAR) framework with time-varying parameters, we find that exchange rate pass-through and fiscal dominance significantly influence the effectiveness of interest rate policy. Our results indicate that inflation targeting regimes have been partially successful in anchoring expectations, but supply-side shocks and global commodity price volatility remain critical challenges. The analysis also highlights the role of fiscal policy coordination and the need for macroprudential tools to complement monetary policy in achieving price stability. The findings have important implications for central banks in developing countries navigating complex macroeconomic environments.