Overview
- Explores global economic and policy uncertainty in South Africa
- Considers the impact of BRICS GDP growth on South Africa
Access this book
Tax calculation will be finalised at checkout
Other ways to access
Table of contents (25 chapters)
-
Front Matter
-
Global Economic Growth, Economic Policy Uncertainty and The Influence of Trade Dynamics
-
Front Matter
-
-
Global Policy Rates and The South African Economy
-
Front Matter
-
-
Capital Flow Surges, Sudden Stops and Elevated Portfolio Inflows Volatility Effects
-
Front Matter
-
Keywords
- BRICS GDP growth shocks
- Foreign economic growth uncertainty
- South African GDP growth
- Equity flows
- Monetary policy tightening shocks
- Federal funds rate
- Repo rate
- South African labor market conditions
- Output growth volatility
- Taylor curve
- Expansionary monetary policy
- Output-employment-unemployment nexus in South Africa
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.
Authors and Affiliations
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.
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: Nombulelo Gumata, Eliphas Ndou
DOI: https://doi.org/10.1007/978-3-030-30888-9
Publisher: Palgrave Macmillan Cham
eBook Packages: Economics and Finance, Economics and Finance (R0)
Copyright Information: The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2019
Hardcover ISBN: 978-3-030-30887-2Published: 02 January 2020
Softcover ISBN: 978-3-030-30890-2Published: 26 August 2021
eBook ISBN: 978-3-030-30888-9Published: 11 December 2019
Edition Number: 1
Number of Pages: XLIII, 385
Number of Illustrations: 257 b/w illustrations
Topics: African Economics, Macroeconomics/Monetary Economics//Financial Economics, Economic Growth, Agricultural Economics, Labor Economics