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Capital Flows, Credit Markets and Growth in South Africa

The Role of Global Economic Growth, Policy Shifts and Uncertainties

Authors: Gumata, Nombulelo, Ndou, Eliphas

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  • Explores global economic and policy uncertainty in South Africa
  • Considers the impact of BRICS GDP growth on South Africa
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eBook 85,59 €
price for Spain (gross)
  • ISBN 978-3-030-30888-9
  • Digitally watermarked, DRM-free
  • Included format: EPUB, PDF
  • ebooks can be used on all reading devices
  • Immediate eBook download after purchase
Hardcover 103,99 €
price for Spain (gross)
  • ISBN 978-3-030-30887-2
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
  • The final prices may differ from the prices shown due to specifics of VAT rules
About this book

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. 

About the authors

Nombulelo Gumata is an economist who has co-authored several books in the areas of international finance and macroeconomics, macro-prudential and regulatory tools and financial stability, labour markets, monetary and fiscal policy.

Eliphas Ndou is an economist at the South African Reserve Bank and has authored books in international finance, public finances, monetary, labour, macro and microeconomics, time-series econometrics, banking regulation and macro-prudential policy.  

Table of contents (25 chapters)

Table of contents (25 chapters)
  • Introduction

    Pages 1-21

    Gumata, Nombulelo (et al.)

  • Is BRICS GDP Growth a Source of Shocks or an Amplifier of Global Growth Responses? What Are the Policy Implications for South Africa?

    Pages 25-54

    Gumata, Nombulelo (et al.)

  • Does the Trade-Openness Channel Impact the Effects of Business Confidence Shocks on Investment Growth?

    Pages 55-67

    Gumata, Nombulelo (et al.)

  • Trade-Openness, Consumer Price Inflation and Exchange Rate Depreciation Shocks

    Pages 69-85

    Gumata, Nombulelo (et al.)

  • Global Growth and Economic Policy Uncertainty Shock Effects on the South African Economy: Do These Reinforce Each Other?

    Pages 87-96

    Gumata, Nombulelo (et al.)

Buy this book

eBook 85,59 €
price for Spain (gross)
  • ISBN 978-3-030-30888-9
  • Digitally watermarked, DRM-free
  • Included format: EPUB, PDF
  • ebooks can be used on all reading devices
  • Immediate eBook download after purchase
Hardcover 103,99 €
price for Spain (gross)
  • ISBN 978-3-030-30887-2
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
  • The final prices may differ from the prices shown due to specifics of VAT rules
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Bibliographic Information

Bibliographic Information
Book Title
Capital Flows, Credit Markets and Growth in South Africa
Book Subtitle
The Role of Global Economic Growth, Policy Shifts and Uncertainties
Authors
Copyright
2019
Publisher
Palgrave Macmillan
Copyright Holder
The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG
eBook ISBN
978-3-030-30888-9
DOI
10.1007/978-3-030-30888-9
Hardcover ISBN
978-3-030-30887-2
Edition Number
1
Number of Pages
XLIII, 385
Number of Illustrations
257 b/w illustrations
Topics