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Inequality, Output-Inflation Trade-Off and Economic Policy Uncertainty

Evidence From South Africa

Authors: Ndou, Eliphas, Mokoena, Thabo

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  • Determines the relevance of output-inflation trade-off and role of inflation regimes in the policy ineffectiveness proposition
  • Shows the extent to which the inflation persistence and inflation regimes constrain the size of output persistence
  • Examines whether economic policy uncertainty channels and inflation regimes impact the multiplier effects of expansionary monetary and fiscal policy on output growth
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eBook $64.99
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  • ISBN 978-3-030-19803-9
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Hardcover $119.99
price for USA in USD
  • ISBN 978-3-030-19802-2
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  • Usually dispatched within 3 to 5 business days.
About this book

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.

About the authors

Dr Eliphas Ndou is an economist at the South African Reserve Bank, and lectures at the University of the Witwatersrand, Johannesburg, South Africa. He holds a PhD in Economics from this university. He has authored books focusing on international finance and macroeconomics, applied macroeconomics, monetary economics, economic growth, public economics, labour economics and banking regulation and macroprudential policy. 


Dr Thabo Mokoena has worked as a lead economist in the Economic Research and Statistics Department of the South African Reserve Bank. He currently works as Chief Director in the Department of Economics, Small Business Development, Tourism and Environmental Affairs. Dr Mokoena has an MA in Economics from State University of New York, USA and an MSc in Finance and Econometrics from the University of York, UK. In April 2008 he was awarded a PhD in Economics by the University of Pretoria, South Africa.

Table of contents (34 chapters)

Table of contents (34 chapters)
  • Introduction

    Pages 1-31

    Ndou, Eliphas (et al.)

  • Income Inequality and GDP Growth Nexus in South Africa: Does the 4.5% Consumer Price Inflation Threshold and Other Channels Play a Role?

    Pages 35-50

    Ndou, Eliphas (et al.)

  • Does the Inflation Rate Below 4.5% Matter for the Distributional Effects of Positive Inflation Shocks on Income Inequality in South Africa?

    Pages 51-72

    Ndou, Eliphas (et al.)

  • Does the Income Inequality Channel Impact the Transmission of Monetary Policy Shocks to Economic Activity?

    Pages 75-86

    Ndou, Eliphas (et al.)

  • Do Monetary Policy Shocks Influence Income Inequality Dynamics in South Africa?

    Pages 87-103

    Ndou, Eliphas (et al.)

Buy this book

eBook $64.99
price for USA in USD (gross)
  • ISBN 978-3-030-19803-9
  • Digitally watermarked, DRM-free
  • Included format: EPUB, PDF
  • ebooks can be used on all reading devices
  • Immediate eBook download after purchase
Hardcover $119.99
price for USA in USD
  • ISBN 978-3-030-19802-2
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
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Bibliographic Information

Bibliographic Information
Book Title
Inequality, Output-Inflation Trade-Off and Economic Policy Uncertainty
Book Subtitle
Evidence From South Africa
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
978-3-030-19803-9
DOI
10.1007/978-3-030-19803-9
Hardcover ISBN
978-3-030-19802-2
Edition Number
1
Number of Pages
XXXVII, 507
Number of Illustrations
202 b/w illustrations, 62 illustrations in colour
Topics