Download or read book Achieving Price Financial and Macro Economic Stability in South Africa written by Nombulelo Gumata and published by Springer Nature. This book was released on 2021-05-27 with total page 556 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book explores the macro-financial effects of central bank balance sheets, macro-prudential tools, and financial regulation in South Africa. How employment can be maximised while keeping inflation low and stable is examined in relation to the structural changes required to alter the composition of South African bank balance sheets. Quantitative methods and approaches are utilised to highlight the impact of suggested policies. This book aims to outline strategies and policy interventions that can help achieve the National Development Plan in South Africa. It will be of interest to researchers and policymakers working within development economics, African economics, development finance, and financial policy.
Download or read book Capital Flows Credit Markets and Growth in South Africa written by Nombulelo Gumata and published by Springer Nature. This book was released on 2019-12-11 with total page 385 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book examines the dynamics in capital flows, credit markets and growth in South Africa. The authors explore the role of global economic growth, policy shifts and various economic policy uncertainties. Central banks in advanced economies are engaged in unconventional monetary policy tools such as balance sheet policies, negative interest rates and extended forward guidance to assist them to meet their price, financial and macro-economic stability objectives. This book determines whether BRICS GDP growth is a source of shocks or an amplifier of global growth shocks. The authors find that global economic growth and policy uncertainty reinforce each other via capital flows, credit conditions and business confidence on the domestic economy. Furthermore, they demonstrate that there is momentum in the changes in the spread between the repo rate and federal funds rate. In addition, global real policy rates impact domestic GDP growth and labor market conditions. The authors examine the economic costs of capital flow surges, sudden stops and elevated portfolio volatility shocks and their interaction with GDP growth and credit. They show that equity and debt inflows matter in the attainment of the price stability mandate. Moreover, business confidence transmits sovereign credit ratings upgrades and downgrades shocks to the real economy via GDP growth, the cost of government debt and borrowing to impact credit growth. High GDP growth increases the likelihood of sovereign credit ratings upgrades, hence policymakers should implement pro-growth policies. Inflation regimes impact the transmission of positive nominal demand shocks to the price level. Low and stable inflation (inflation below 4.5 per cent) reduces the pass-through of positive nominal demand shocks to inflation.
Download or read book Bank Credit Extension and Real Economic Activity in South Africa written by Nombulelo Gumata and published by Springer. This book was released on 2017-03-13 with total page 612 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book presents empirical evidence that supports and facilitates a practical, integrated approach to how bank regulatory and selected macro-prudential tools interact with monetary policy to achieve price and financial stability. The empirical results contained in various chapters accompany in-depth historical analysis and counterfactual scenarios that enable proper policy evaluation and the interaction of bank regulatory, macro-prudential and monetary policy tools in South Africa. The presented evidence also identifies financial asset boom and bust episodes and the associated costly output losses. In addition, the authors explore the amplification of credit dynamics by commodity prices and sector credit re-allocation due to capital inflows shocks. The book’s empirical analysis uses a wide range of statistical and econometric approaches on granular data and economic variables to derive policy implications and recommendations. This in-depth quantitative analysis includes determining inverse transmission of global liquidity, as well as the effects of capital flows, lending-rate margins, financial regulatory uncertainty, the National Credit Act, bank capital-adequacy ratios, bank loan loss provisions, loan-to-value ratios and repayment-to-income ratios on the macro-economy.
Download or read book Global Growth and Financial Spillovers and the South African Macro economy written by Mthuli Ncube and published by Springer. This book was released on 2016-04-29 with total page 203 pages. Available in PDF, EPUB and Kindle. Book excerpt: To what extent is South Africa affected by G8 economies and BRIC growth shocks? This book identifies channels that amplify these shock effects, the relevance of third country transmission effects and the effects of the first and second rounds of US quantitative easing. The changing reactions of South African variables over time to financial shocks emanating from the US and selected countries in the Euro area, is presented. The book quantifies the effects of capital flow shocks, determines the counterfactuals of asset prices and economic growth variables, and compares the contribution of capital flows and domestic macro factors on asset prices. The effects of the exchange rate depreciation are contrasted to the decline in investment as key drivers of the trade balance. Stock market interdependence is determined amongst South African, Indian and Brazilian equities. The contributions of stock price returns and volatility on South African economic growth are contrasted. The authors construct a financial stress index for South Africa and determine how it amplifies shocks.
Download or read book Fiscal Policy Shocks and Macroeconomic Growth in South Africa written by Eliphas Ndou and published by Springer Nature. This book was released on 2023-09-16 with total page 271 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book explores the disconnect between fiscal policy and macroeconomic development in South Africa. It analyses the factors that have contributed to the lack of economic growth in the country over recent decades and outlines an improved fiscal policy framework that increases investment and employment. Particular attention is given to the impact of government debt and its relationship with GDP, the connection between budget deficits and interest rates, and how economic policy uncertainty affects employment dynamics and inflation. This book provides practical fiscal policy suggestions to increase economic growth in South Africa and Africa more generally. It will be relevant to researchers and policymakers interested in African economics and economic policy.
Download or read book House Price Developments Macroeconomic Fundamentals and Financial Stability in South Africa written by L. F. Selialia and published by . This book was released on 2005 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book South Africa s Post apartheid Two step written by Brahima Coulibaly and published by . This book was released on 2009 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt: "During Apartheid, there was little need for redistributional policies or to borrow for public works since the vast majority of the population was underserved. With the arrival of a representative democracy in 1994, however, South Africa faced a unique problem--providing new and improved public services for the majority of its citizens while at the same time ensuring that filling this void would not undermine macroeconomic stability. Over the past fifteen years, policy makers have achieved macrostability, but progress on social needs has been below expectations and South Africa continues to lag behind its peers. This paper reviews the progress made so far and examines the challenges ahead for the upcoming administration. Our analysis suggest an increase in skill formation as a possible solution to the policy dilemma of fulfilling the outsized social demands while maintaining macrostability"--Federal Reserve Board web site.
Download or read book In Pursuit of Financial Stability written by Nyasha Madya and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The 2008 Global Financial Crisis was one of the greatest schools ever attended by the world s most intellect financial sector supervisors and regulators. These intelligent minds had for over decades placed much emphasis on only one of their central banks traditional roles, price stability whilst neglecting an equally important duty of directly promoting and maintaining financial stability. As pioneered during the Victorian era (1840s to 1914), the idea was that financial stability would be achieved through the implementation of monetary policy. The aftermath of the financial crisis saw the great minds from major participants on the global financial market coming together to design a regulatory framework model that facilitates the achievement financial stability. Hence, through the G20 countries meeting held in 2010 in Basel, Switzerland, a regulatory document or soft law rather, called Basel III was created. Incorporated in this document is a revamped macroprudential policy, a regulatory framework that is going to be heavily relied on to achieve financial stability both at a domestic and international scale. South Africa as a major participant on the global financial market and as a member of the G20 also took it upon itself to adopt the upgraded macroprudential policy as prescribed by Basel III. However, the adoption of this refurbished policy has not been a smooth flow. Many debates and scholars eyebrows have been raised concerning macroprudential policy. One of the heated and interesting debates has been on the manner in which this policy is going to interact with other public and macroeconomic policies such as monetary policy given the overlaps and areas of conflict between these policies. This research aims at suggesting the best possible legal framework that will facilitate the peaceful co-existence of macroprudential policy and monetary policy. To achieve this goal, the reader is first given a sense of the Global Financial Crisis and the surrounding circumstances. From there, a brief explanation of monetary policy and macroprudential policy is provided as it is crucial for one to first understand what these two policies that have raised so much concern entail. Meaning, the objectives, institutional, operational and analytical framework of these two policies is discussed. Moving on, the heart of this research is dissected, and this involves deconstructing the heated interaction debate, where it emanates from and the different arguments that have been advanced so far. Lastly, a brief outline of the most convincing argument will be provided together with recommendations on key issues concerning the interaction debate, that the South African Reserve Bank might have to consider. This dissertation reflects the law as at 31 October 2018
Download or read book Yes Africa Can written by Punam Chuhan-Pole and published by World Bank Publications. This book was released on 2011-06-24 with total page 497 pages. Available in PDF, EPUB and Kindle. Book excerpt: Takes an in-depth look at twenty-six economic and social development successes in Sub-Saharan African countries, and addresses how these countries have overcome major developmental challenges.
Download or read book The Pursuit of Financial Stability Post the Global Financial Crisis written by Yvonne Orateng Motsoai and published by . This book was released on 2019 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The South African Reserve Bank (SARB) derives its mandate from the South Africa Reserve Bank Act, 90 of 1989. This mandate is confirmed in section 224(1) of the Constitution of the Republic of South Africa, 1996 which provides that the objective of the SARB is to "protect the value of the currency in the interest of balanced and sustainable economic growth in the Republic"℗+. The SARB as the central bank of South Africa has various powers and functions in terms of section 10 of the South African Reserve Bank Act and its mandate for maintaining financial stability has historically been implied as a consequence of such powers. Financial stability has however not until very recently been captured in legislation as one of the explicit responsibilities of the SARB. However, recognising that achieving financial stability is the ultimate pursuit for economic growth, South Africa started a formal review of its financial regulatory system in 2007, and this review process which is detailed in the Treasury policy documents "A safer financial sector to serve South Africa better (2011) and "Implementing a Twin Peaks model of financial regulation in South Africa (2013)) eventually culminated in the enactment of Twin Peaks model of regulation in 2017. In terms of the Twin Peaks model the prudential regulation of financial institutions and the regulation of market conduct are separated in order to put equal focus on both functions. Notably, the Financial Sector Regulation Act, 9 of 2017 (FSR Act) as a framework act for the South African Twin Peaks model also strengthened the mandate of the SARB by entrusting it with the responsibility of ensuring financial stability and generally the macro prudential oversight over financial institutions.
Download or read book Macroeconomics written by Nicoli Nattrass and published by David Philip Publishers. This book was released on 2000 with total page 300 pages. Available in PDF, EPUB and Kindle. Book excerpt: This clear and innovative text, now in its second edition, has been written primarily for students of economics, but is also aimed at all those wishing to understand the macroeconomic policy debate in South Africa.
Download or read book Growth Employment and Redistribution written by and published by . This book was released on 1994 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Restructuring the Labour Market written by Guy Standing and published by International Labour Organization. This book was released on 1996 with total page 524 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Future of the South African Political Economy Post COVID 19 written by Mzukisi Qobo and published by Springer Nature. This book was released on 2022-10-31 with total page 388 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book examines the COVID-19 pandemic through socioeconomic lens that draw on history, approaches to state-market relations, and public policy perspectives In 2020, the world experienced the worst pandemic since the outbreak of the Spanish Flu of 1918, which continues to have far[1]reaching implications for the global economy and triggered macro-economic dislocations that severely affected the most vulnerable countries and segments of society. This book was conceived as a response to the disruptive shifts induced by the pandemic, with a particular focus on South Africa. International experience has shown that countries and societies that have gone through tough economic times, either as a consequence of wars or economic depressions, have responded to crises by enacting unpopular policy measures based on difficult tradeoffs, which often made way for innovation. The authors outline policy responses to the COVID-19 crisis and propose several interventions to mitigate its effects. These include developing innovative approaches to fiscal and monetary policies, labour market policies, industrial policies, as well as social policies. Building state capabilities, improving the governance and performance of state institutions, and managing digital change are some of the clear policy interventions that are laid out in this book.
Download or read book Challenges of Growth and Globalization in the Middle East and North Africa written by Mr.Hamid R Davoodi and published by International Monetary Fund. This book was released on 2003-09-05 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Middle East and North Africa (MENA) is an economically diverse region. Despite undertaking economic reforms in many countries, and having considerable success in avoiding crises and achieving macroeconomic stability, the region’s economic performance in the past 30 years has been below potential. This paper takes stock of the region’s relatively weak performance, explores the reasons for this out come, and proposes an agenda for urgent reforms.
Download or read book How Does Political Instability Affect Economic Growth written by Mr.Ari Aisen and published by International Monetary Fund. This book was released on 2011-01-01 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: The purpose of this paper is to empirically determine the effects of political instability on economic growth. Using the system-GMM estimator for linear dynamic panel data models on a sample covering up to 169 countries, and 5-year periods from 1960 to 2004, we find that higher degrees of political instability are associated with lower growth rates of GDP per capita. Regarding the channels of transmission, we find that political instability adversely affects growth by lowering the rates of productivity growth and, to a smaller degree, physical and human capital accumulation. Finally, economic freedom and ethnic homogeneity are beneficial to growth, while democracy may have a small negative effect.
Download or read book Global Economic Prospects June 2021 written by World Bank and published by World Bank Publications. This book was released on 2021-08-03 with total page 339 pages. Available in PDF, EPUB and Kindle. Book excerpt: The world economy is experiencing a very strong but uneven recovery, with many emerging market and developing economies facing obstacles to vaccination. The global outlook remains uncertain, with major risks around the path of the pandemic and the possibility of financial stress amid large debt loads. Policy makers face a difficult balancing act as they seek to nurture the recovery while safeguarding price stability and fiscal sustainability. A comprehensive set of policies will be required to promote a strong recovery that mitigates inequality and enhances environmental sustainability, ultimately putting economies on a path of green, resilient, and inclusive development. Prominent among the necessary policies are efforts to lower trade costs so that trade can once again become a robust engine of growth. This year marks the 30th anniversary of the Global Economic Prospects. The Global Economic Prospects is a World Bank Group Flagship Report that examines global economic developments and prospects, with a special focus on emerging market and developing economies, on a semiannual basis (in January and June). Each edition includes analytical pieces on topical policy challenges faced by these economies.
