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Labour Market and Fiscal Policy Adjustments to Shocks

The Role and Implications for Price and Financial Stability in South Africa

  • Nombulelo Gumata
  • Eliphas Ndou

Table of contents

  1. Front Matter
    Pages i-li
  2. Labour Market Characteristics and Monetary Policy

  3. The Minimum Wage and Theoretical Predictions

  4. Labour Market Reforms and Price Stability

    1. Front Matter
      Pages 163-163
    2. Nombulelo Gumata, Eliphas Ndou
      Pages 165-181
  5. Labour Market Conditions, Labour Productivity, Inflation Expectations and Monetary Policy

  6. Labour Market Interactions with Selected Macroprudential Tools and Monetary Policy

    1. Front Matter
      Pages 273-273
    2. Nombulelo Gumata, Eliphas Ndou
      Pages 275-286
    3. Nombulelo Gumata, Eliphas Ndou
      Pages 287-294
  7. The Interaction Between the Public–Private Sector Wages and Employment Growth

    1. Front Matter
      Pages 319-319
    2. Nombulelo Gumata, Eliphas Ndou
      Pages 333-344
    3. Nombulelo Gumata, Eliphas Ndou
      Pages 345-357
    4. Nombulelo Gumata, Eliphas Ndou
      Pages 359-370
  8. Nominal Wage Dynamics and Price Stability

  9. The Fiscal Policy Taxation Channel

    1. Front Matter
      Pages 395-395
    2. Nombulelo Gumata, Eliphas Ndou
      Pages 407-419
    3. Nombulelo Gumata, Eliphas Ndou
      Pages 421-432
    4. Nombulelo Gumata, Eliphas Ndou
      Pages 433-445
    5. Nombulelo Gumata, Eliphas Ndou
      Pages 447-458
  10. The Fiscal Policy Government Spending Cuts Channel

    1. Front Matter
      Pages 459-459
    2. Nombulelo Gumata, Eliphas Ndou
      Pages 461-466
  11. The Government Consumption Spending, Lending Spreads and the Cost of Borrowing Channels

    1. Front Matter
      Pages 481-481
    2. Nombulelo Gumata, Eliphas Ndou
      Pages 511-522
    3. Nombulelo Gumata, Eliphas Ndou
      Pages 523-533
  12. Fiscal Policy, the Current Account and Transmission to Credit

    1. Front Matter
      Pages 535-535
    2. Nombulelo Gumata, Eliphas Ndou
      Pages 537-570

About this book

Introduction

This book focuses on the implications of the South African labour market dynamics including labour market reforms and fiscal policy for monetary policy and financial stability. Evidence suggests there are benefits in adopting an approach that coordinates labour market policies and reforms, fiscal policy, price and financial stability. In particular, the benefits of coordinating policies present policymakers with policy options in cases where they are confronted by binding policy trade-offs and dilemmas, such as in cases when there is divergence in price and financial and economic growth outcomes.

The empirical insights and policy recommendations are based on different techniques that include the counterfactual and endogenous-exogenous approaches, non-linearities introduced by thresholds and the impact of persistent and transitory shock effects. Themes covered in the book include various aspects of labour market conditions and reforms and their link to inflation and inflation expectations, the impact of the national minimum wage, the interaction between public and private sector wage inflation, economic policy uncertainty and employment, government debt thresholds, sovereign yields and debt ratings downgrades, labour productivity, the impact of inflation regimes on expansionary fiscal and monetary policy multipliers, the increase in government cost of funding on price and financial stability and the link between fiscal policy and credit dynamics.

Keywords

Labor market Monetary policy Price stability Labor Market Conditions Labor Market Structure

Authors and affiliations

  • Nombulelo Gumata
    • 1
  • Eliphas Ndou
    • 2
  1. 1.South African Reserve BankPretoriaSouth Africa
  2. 2.South African Reserve BankPretoriaSouth Africa

Bibliographic information

  • DOI https://doi.org/10.1007/978-3-319-66520-7
  • Copyright Information The Editor(s) (if applicable) and The Author(s) 2017
  • Publisher Name Palgrave Macmillan, Cham
  • eBook Packages Economics and Finance
  • Print ISBN 978-3-319-66519-1
  • Online ISBN 978-3-319-66520-7
  • Buy this book on publisher's site
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