The management of liquid asset and cash reserve requirements in the South African banking sector
Capital flows, emerging markets and South Africa
- Authors: Mabunda, Joyce
- Date: 2012-08-23
- Subjects: Capital movements , Macroeconomics , Foreign exchange rates , Fiscal policy
- Type: Thesis
- Identifier: uj:3076 , http://hdl.handle.net/10210/6496
- Description: M.A. , Financial markets are rapidly integrating into a single global market place, and developing countries including South Africa, are increasingly part of this process. The process is being driven by both the push and the pull factors in both developed and developing countries. Nevertheless, the overwhelming majority of the developing countries still need to create the conditions to attract long-term capital flows. Although South Africa has been attracting capital flows since the 1990s, the level is not sustainable because it mainly attracts shortterm capital. It has failed to attract long-term capital on a sustainable basis because of economic and political crises facing the country. Thus, the South African government needs to build the kind of macroeconomic, regulatory and institutional environment that channels this private capital into broad - based and sustainable growth.
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Management of fiscal and monetary policies interdependence in South African economy : A Bayesian VAR approach
- Authors: Sanusi, K.A. , Eita, J.H . , Meyer, D.F.
- Date: 2021
- Subjects: BVAR , Economy , Fiscal policy
- Language: English
- Type: Journal article
- Identifier: http://hdl.handle.net/10210/490364 , uj:44742 , Citation: Sanusi, K.A., Eita, J.H. and Meyer, D.F., 2021. Management of fiscal and monetary policies interdependence in South African economy: A Bayesian VAR approach. Journal of Contemporary Management, 18(2), pp.86-113. , DOI: https://doi.org/10.35683/jcm21035.122 , ISSN: 1815-7440
- Description: Abstract: Purpose of the study: This study revisits the management and interaction aspects between fiscal and monetary policies in South Africa using a Bayesian vector autoregressive model (BVA). Design/methodology/approach: Monthly data on the inflation rate, interest rate, money supply, tax revenue, government spending and government debt for the period 2009 - 2019 were sourced from the South African Reserve Bank. Findings: The impulse response analysis shows that positive shocks to money supply prompt monetary authority to raise the economy's interest rate, which increases the bank rate. Inflation does not respond to shock to government spending and could drive inflation in the South African economy from the supply side rather than the demand side. Tax revenue and money supply shocks are significant sources of variation in inflation. These variables account for 7 and 18 percent variation in government spending. Recommendations/value: The study concludes that monetary authority must employ supply-side measures to manage the price level.
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