Capital Flows, Credit Markets and Growth in South Africa - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Capital Flows, Credit Markets and Growth in South Africa write by Nombulelo Gumata. This book was released on 2019-12-11. Capital Flows, Credit Markets and Growth in South Africa available in PDF, EPUB and Kindle. 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.
Bank Credit Extension and Real Economic Activity in South Africa
Bank Credit Extension and Real Economic Activity in South Africa - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Bank Credit Extension and Real Economic Activity in South Africa write by Nombulelo Gumata. This book was released on 2017-03-13. Bank Credit Extension and Real Economic Activity in South Africa available in PDF, EPUB and Kindle. 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.
Analyzing Capital Flow Drivers Using the ‘At-Risk’ Framework: South Africa’s Case
Analyzing Capital Flow Drivers Using the ‘At-Risk’ Framework: South Africa’s Case - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Analyzing Capital Flow Drivers Using the ‘At-Risk’ Framework: South Africa’s Case write by Rohit Goel. This book was released on 2021-10-22. Analyzing Capital Flow Drivers Using the ‘At-Risk’ Framework: South Africa’s Case available in PDF, EPUB and Kindle. Cross-border capital flows are important for South Africa. They fund the nation’s relatively large external financing needs and have important financial stability implications evidenced by the large capital outflows and asset price selloffs during the COVID-19 pandemic. This paper adds to the literature on the drivers of South Africa’s capital flows by applying the ‘at-risk’ framework––which differentiates between the likelihood of “extreme” inflows (surges) and outflows (reversals) and of “typical” flows––to both nonresident and resident capital flows. Estimated results show that among nonresident flows, the portfolio debt component is most sensitive to changes in external risk sentiment particularly during reversals. This applies to flows to the sovereign sector. Nonresident equity flows, both portfolio and FDI, are most sensitive to domestic economic activity especially during surges. This applies to flows to the corporate and banking sectors. Results also suggest that resident flows, in particular the FDI component, tend to offset nonresident flows, thus acting as buffers against funding withdrawal during periods of global risk aversion.
The Composition of Capital Flows
The Composition of Capital Flows - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook The Composition of Capital Flows write by Mr.Norbert Funke. This book was released on 2005-03-01. The Composition of Capital Flows available in PDF, EPUB and Kindle. Over the past decade, South Africa has attracted relatively little foreign direct investment (FDI), but considerable amounts of portfolio inflows. In this context, the objective of the paper is twofold: to identify the determinants of the level and composition of capital flows to emerging markets and to draw policy conclusions for South Africa. We estimate a dynamic panel for up to 81 emerging markets using GMM (Generalized Method of Moments) techniques. The results suggest that further trade and capital control liberalization would increase the share of FDI. Additionally, a reduction in exchange rate volatility would affect the composition of capital flows in favor of FDI.
Global Growth and Financial Spillovers and the South African Macro-economy
Global Growth and Financial Spillovers and the South African Macro-economy - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Global Growth and Financial Spillovers and the South African Macro-economy write by Mthuli Ncube. This book was released on 2016-04-29. Global Growth and Financial Spillovers and the South African Macro-economy available in PDF, EPUB and Kindle. 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.
