Monetary Policy and the Economy in South Africa [Hardcover]

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.Contents 1. South African Monetary Policy Regimes  2. Effects of Monetary Policy on Output 2.1. Introduction 2.1.1. Theory and Past Empirical Evidence 2.2. VAR Methodology 2.3. Data 2.3.1. How do Variables React upon Impact? 2.5. Empirical Results 2.4.1. Examining the Relationship between Estimated Policy Shocks and Recessions 2.5. Conclusion 3. Inflation Uncertainty and Output 3.1. Introduction 3.2. Theory 3.2.1. The Friedman Hypothesis 3.2.2. The Impact of Inflation Uncertainty on Inflation 3.2.3. Inflation Uncertainty, Real Output Growth, and Output Growth Uncertainty 3.3. Literature Review 3.4. Econometric Methodology 3.4.1. The Relationship between Inflation and Inflation Uncertainty 3.4.2. The Inflation Uncertainty and Real Output Growth 3.5. Data and Descriptive Statistics 3.6. Empirical Results 3.6.1. VAR Methodology 3.7. Conclusions 4. Monetary Policy Transmission, House Price and Consumption 4.1. Introduction 4.2. Consumption, Housing Prices and Interest Rates 4.2.1. The Effect of Monetary Policy on House Prices 4.2.2. The Effects of House Prices on Consumption 4.3. The VAR Model 4.4. Data 4.5. Results and Discussion 4.5.1. Forecast Error Variance Decomposition 4.5.2. Robustness Analysis 4.5.3. Discussion of Consumption Declines Results 2.5. Conclusion Appendix: Quantifying Declines in Consumption Unit Root Tests 5. Monetary Policy, Disposable Income and Consulƒ!