Download or read book Fiscal Policy Shocks and Macroeconomic Growth in South Africa written by Eliphas Ndou and published by Palgrave Macmillan. This book was released on 2023-10-01 with total page 0 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 Monetary Policy and the Economy in South Africa written by M. Ncube and published by Springer. This book was released on 2013-08-30 with total page 259 pages. Available in PDF, EPUB and Kindle. Book excerpt: Monetary Policy and the Economy in South Africa covers both modern theories and empirical analysis, linking monetary policy with relating house wealth, drivers of current account based on asset approach, expenditure switching and income absorption effects of monetary policy on trade balance, effects of inflation uncertainty on output growth and international spill overs. Each chapter uses data and relevant methodology to answer empirical and pertinent policy questions in South Africa. The book gives new insights into understanding these areas of economic policy and the wider emerging-markets.
Download or read book Macroeconomics written by Nicoli Nattrass and published by New Africa Books. This book was released on 2002 with total page 324 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Inequality Output Inflation Trade Off and Economic Policy Uncertainty written by Eliphas Ndou and published by Springer. This book was released on 2019-08-13 with total page 507 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book focuses on income inequality, output-inflation trade-off and economic policy uncertainty in South Africa. Tight monetary and macroprudential policies raise income inequality. Income inequality transmits monetary policy and macroprudential policy shocks to real economic activity. Economic policy uncertainty influences the dynamics in the lending rate margins, inflation expectations, credit, pass-through of the repo rate to bank lending rates and companies’ cash holdings. The trade-off between output and inflation and output growth persistence vary with inflation regimes. Stimulatory demand policy shocks are less effective in high inflation regime. High income inequality raises consumption inequality, which raises demand for credit, but price stability matters in this link. Increased bank concentration raises income inequality, lowers economic growth and employment rate. Elevated economic policy uncertainty lowers output growth, lowers capital formation, reduces credit and raises companies’ cash holdings. Increased companies’ cash holdings reduce capital formation and impact the transmission of expansionary monetary policy shocks to real economic activity. This book shows there is an inflation level within the target band below it which lowers income inequality, while raising GDP growth and employment. Thus price stability, economic policy uncertainty and income inequality matter for the efficient transmission of policy shocks.
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 Monetary Policy Inflation and Distributional Impact South Africa s Case written by Mr. Ken Miyajima and published by International Monetary Fund. This book was released on 2021-03-19 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: The South African Reserve Bank has continued to fulfill its constitutional mandate to protect the value of the local currency by keeping inflation low and steady. This paper provides evidence that monetary policy tightening aimed at maintaining low and stable inflation could at the same time reduce consumption inequality over a 12–18 month horizon, commonly understood as the transmission lag of monetary policy action to the real economy, and similar to the distance between survey waves used in the analysis. In response to “exogenous” monetary policy tightening, the real consumption of individuals at lower ends of the consumption distribution declines relatively modestly, or even increases. With greater reliance on government transfers, thus smaller reliance on labor income, and relatively larger food consumption, these individuals appear to benefit mainly from lower inflation. By contrast, the real consumption of individuals at higher ends of the consumption distribution is more likely to decline due to lower labor income, weaker asset price performance, and higher debt service cost.
Download or read book South Africa Macro Policy Mix and Its Effects on Growth and the Real Exchange Rate Empirical Evidence and GIMF Simulations written by Mr.Jorge I Canales Kriljenko and published by International Monetary Fund. This book was released on 2011-08-25 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines whether a mix of tighter fiscal policy, looser monetary policy, and greater reserve build-up would increase growth and depreciate the rand in real terms. The experience of South Africa over the last twenty years is looked at using a number of econometric techniques that control for the external environment.
Download or read book Global Economic Uncertainties and Exchange Rate Shocks written by Eliphas Ndou and published by Springer. This book was released on 2018-01-08 with total page 509 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book examines the macroeconomic and regulatory impact of domestic and international shocks on the South African economy resulting from the 2009 financial crisis. It also assesses the impact of the US economy’s eventual recovery from the crisis and the prospect of higher US interest rates in future. Told in three parts, the book explores associations between economic growth, policy uncertainty and the key domestic and international transmission channels, and transmission effects, of global financial regulatory and domestic macro-economic uncertainties on subdued and volatile economic recovery, financial channels, lending rate margins, and credit growth. The book concludes by extending its focus to the role of US monetary policy, capital flows and rand/US dollar volatility on the South African economy.
Download or read book Dynamics of Macroeconomic Uncertainty on Economic Growth in the Presence of Fiscal Consolidation in South Africa from 1994 to 2022 written by Eugene Msizi Buthelezi and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates the effects of macroeconomic uncertainty on economic growth in the presence of fiscal consolidation in South Africa. Markov-switching dynamic regression (MSDR) and time-varying parameter vector autoregression (TVP-VAR) were performed using time series data from 1994 to 2022. Less attention has been given directly to the investigation of macroeconomic uncertainty in different regimes of economic growth in South Africa. Three states are found for economic growth, with mean growth rates of negative 6.29% and positive 3.90% and 1.47%, respectively. Macroeconomic uncertainty was found to have a negative impact of 6.72%, 4.38%, and 3.08% in states 1 to 3, respectively. Fiscal consolidation provided an accommodative policy, as it reduced the negative impact of macroeconomic uncertainty by 3.17%, 1.80%, and 0.92% in states 1 to 3, respectively. However, fiscal consolidation does not completely reduce the negative impact of macroeconomic uncertainty. The transition probabilities of economic growth moving and returning to the same states are 29.46%, 34.07%, and 58.02%, in each state, respectively. The time-varying impulse response functions showed that the shock of macroeconomic uncertainty harms economic growth. Nevertheless, the multiplier effect is not large; however, the economy operates below equilibrium and does not restore equilibrium after the effect of macroeconomic uncertainty. This reflects that it takes time for macroeconomic uncertainty to filter out of the South African economy. It is recommended that fiscal consolidation be considered as an accommodative fiscal policy to reduce macroeconomic uncertainty but not as a main policy for economic growth.
Download or read book South Africa written by International Monetary Fund. African Dept. and published by International Monetary Fund. This book was released on 2020-01-30 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: This Selected Issues paper studies the growth-inflation trade-off of monetary policy in South Africa. The combination of low growth and stubbornly high inflation expectations for a protracted period has complicated monetary policy decisions. The IMF staff analysis contributes to the ongoing growth-inflation trade-off discussion in South Africa, concluding that there is limited growth trade-off of monetary policy efforts to anchor inflation expectations at a lower level at present. The findings in this note suggest that the South African Reserve Bank should continue its efforts of anchoring inflation and inflation expectations at a lower level because monetary policy lends limited support to growth dampened by structural issues. During the 2010s, domestic demand growth responded little to monetary policy action. The environment of weak growth, low interest rates, and relatively moderate inflation (expectations) could have muted monetary policy transmission. Ultimately, the constraints to economic growth need to be removed. Meanwhile, inflation expectations continue to respond to monetary policy action albeit to a lesser extent. Monetary policy transmission through demand has weakened––demand growth does not systematically respond to monetary policy action nor does core inflation––but the exchange rate and credibility channels appear to remain operational.
Download or read book Economic Globalization and Fiscal Policy written by Iraj Abedian and published by . This book was released on 1998 with total page 580 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book gives a brief historical perspective of South Africa, examines the country's macro-economic policy, the physical and human resources, the importance of the informal economy and income redistribution, and the appropriate role for government. It considers lessons for South Africa from the Newly Industrialized Countries. The authors also offer a workable growth policy consistent with long- and short-term economic issues.
Download or read book Leading Issues in South African Macroeconomics written by and published by . This book was released on 1989 with total page 364 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Macroeconomics written by Nicoli Nattrass and published by David Philip Publishers. This book was released on 1997 with total page 292 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book South Africa Selected Issues written by International Monetary Fund and published by INTERNATIONAL MONETARY FUND. This book was released on 2009-09-14 with total page 88 pages. Available in PDF, EPUB and Kindle. Book excerpt: South Africa's macroeconomic policies face a complicated task of balancing between supporting domestic demand and maintaining stability. The Selected Issues paper for South Africa discusses economic development and policies. Although the opening output gap and declining employment do call for countercyclical fiscal and monetary policy easing, policymakers should also be mindful of the effects of such policies on external and internal macroeconomic stability. The combined package of monetary and fiscal policies has considerable effects on growth and employment.
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 Post Apartheid South Africa written by Mr.M. Nowak and published by International Monetary Fund. This book was released on 2006-01-12 with total page 244 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book provides a comprehensive review of recent economic developments in South Africa and the structural and policy challenges facing the authorities. Individual papers examine a range of topics such as unemployment and the labor market, recent trends in the private saving rate, the role of foreign direct investment in the development of South Africa’s economy, the human and economic repercussions of the HIV/AIDS epidemic, the role of fiscal policy in economic stabilization, inflation developments, liberalization of trade and capital transactions, exchange rate developments, and lessons from the rand crises of 1998 and 2001.
Download or read book Global Growth and Financial Spillovers and the South African Macro economy written by Mthuli Ncube and published by Palgrave Macmillan. This book was released on 2014-01-14 with total page 187 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book offers new quantitative insights into how South African economy reacts to external economic shocks. The analysis includes focusing on economic growth and financial spill over, effects of capital inflows, contrasting the stock market price returns and volatility on economic growth and determining the effects of financial stress.
