Monetary Policy, Inflation, and Distributional Impact: 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 Monetary Policy, Inflation, and Distributional Impact: South Africa’s Case write by Mr. Ken Miyajima. This book was released on 2021-03-19. Monetary Policy, Inflation, and Distributional Impact: South Africa’s Case available in PDF, EPUB and Kindle. 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.
Inflation Expectations Anchoring Across Different Types of Agents: the Case of South Africa
Inflation Expectations Anchoring Across Different Types of Agents: the Case of 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 Inflation Expectations Anchoring Across Different Types of Agents: the Case of South Africa write by Mr.Ken Miyajima. This book was released on 2018-08-02. Inflation Expectations Anchoring Across Different Types of Agents: the Case of South Africa available in PDF, EPUB and Kindle. Inflation forecasts are modelled as monotonically diverging from an estimated long-run anchor point, or “implicit anchor”, towards actual inflation as the forecast horizon shortens. Fitting the model with forecasts by analysts, businesses and trade unions for South Africa, we find that inflation expectations have become increasingly strongly anchored. That is, the degree to which the estimated implicit anchor pins down inflation expectations at longer horizons has generally increased. Estimated inflation anchors of analysts lie within the 3–6 percent inflation target range of the central bank. However, the implicit anchors of businesses and trade unions, who are directly involved in the setting of wages and prices that drive the inflation process, have remained above the top end of the official target range. Possible explanations for these phenomena are discussed.
Monetary Policy and the Economy in South Africa
Monetary Policy and the Economy 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 Monetary Policy and the Economy in South Africa write by M. Ncube. This book was released on 2013-08-30. Monetary Policy and the Economy in South Africa available in PDF, EPUB and Kindle. 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.
The Relative Merits and Implications of Inflation Targeting for South Africa
The Relative Merits and Implications of Inflation Targeting for 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 The Relative Merits and Implications of Inflation Targeting for South Africa write by Mr.Gunnar Jonsson. This book was released on 1999-08-01. The Relative Merits and Implications of Inflation Targeting for South Africa available in PDF, EPUB and Kindle. This paper describes the main elements of inflation targeting, reviews its pros and cons, and examines the experiences thus far in countries using this framework. It discusses the implications and relative merits of such a framework for South Africa, and concludes that it would be feasible and desirable for South Africa to adopt explicit inflation targeting. Doing so could reduce uncertainties about the Reserve Bank’s objectives and enhance the transparency of monetary policy. However, further experience with the operational aspects of the repurchase system and a refinement of the inflation forecasting framework may be needed before inflation targeting is implemented.
Inequality, Output-Inflation Trade-Off and Economic Policy Uncertainty
Inequality, Output-Inflation Trade-Off and Economic Policy Uncertainty - 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 Inequality, Output-Inflation Trade-Off and Economic Policy Uncertainty write by Eliphas Ndou. This book was released on 2019-08-13. Inequality, Output-Inflation Trade-Off and Economic Policy Uncertainty available in PDF, EPUB and Kindle. 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.
