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Is the Tightening in the National Credit Act a Driver of Growth of Income Inequality?

  • Eliphas Ndou
  • Thabo Mokoena
Chapter

Abstract

Evidence reveals that the NCA raises income inequality. Evidence from counterfactual approaches shows that the rise of growth of income inequality due tightening NCA shock exacerbates the decline in credit growth, residential investment growth and GDP growth. This evidence shows that the income inequality channel is a potent conduit that transmits the NCA shocks.

References

  1. Frost, J., & van Stralen, R. (2017). Macroprudential policy and income inequality. Journal of International Money and Finance, 85, 278–290.CrossRefGoogle Scholar
  2. Gumata, N., & Ndou, E. (2017). Labour market and fiscal policy adjustments to shocks: The role and implications for price and financial stability in South Africa. Cham: Palgrave Macmillan.Google Scholar
  3. Monin, P. (2017). Monetary policy, macroprudential regulation and inequality (ECP, Discussion Note 2017/2). Google Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Eliphas Ndou
    • 1
    • 3
    • 4
  • Thabo Mokoena
    • 2
  1. 1.Economic Research DepartmentSouth African Reserve BankPretoriaSouth Africa
  2. 2.Department of Economic, Small Business Development, Tourism and Environmental AffairsFree State Provincial GovernmentBloemfonteinSouth Africa
  3. 3.School of Economic and Business SciencesUniversity of the WitwatersrandJohannesburgSouth Africa
  4. 4.Wits Plus, Centre for Part-Time StudiesUniversity of the WitwatersrandJohannesburgSouth Africa

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