...Salvatore Capasso; Oreste Napolitano; Ana Laura Viveros Jiménez Purpose The idea of this study is to provide a solid Financial Condition Index (FCI) that allows the monetary transmission policy to be monitored in a country which in recent decades has suffered from major financial and monetary...

... of in‐sample SARB interest rate setting behaviour as the financial crisis unfolds. The SARB policy‐makers pay close attention to the financial conditions index when setting interest rates. The SARB's response of monetary policy to inflation is greater during business cycle recessions with not much weight...