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E52

Monetary Policy

Does household net financial wealth explain the asymmetric reaction of household consumption to monetary policy shocks in South Africa?

Eliphas Ndou
Ndou et al (2019) showed that, in absolute terms, the decline in household consumption due to the monetary policy tightening shocks exceeds the increase in household consumption, following the monetary policy loosening shocks of the same magnitude. This paper applies a counterfactual vector...
Sep 2020
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Spillovers of the Conventional and Unconventional Monetary Policy from the US to South Africa

Alain Kabundi, Tumisang Loate and Nicola Viegi
This paper assesses the effect of US monetary policy on South Africa during the period 1990- 2018. We separately analyse and compare the effect of conventional monetary policy, before the Global Financial Crisis, and unconventional monetary policy, after the US monetary policy reached the zero-...
Apr 2020
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The optimal monetary and macroprudential policies for the South African economy

Guangling Liu and Thabang Molisey
We investigate the optimal design and e ectiveness of monetary and macroprudential policies in promoting macroeconomic (price) and financial stability for the South African economy. We develop a New Keynesian dynamic stochastic general equilibrium model featuring a housing market, a banking sector...
Feb 2020
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The monetary policy of the South African Reserve Bank: stance, communication and credibility

Alberto Coco, Nicola Viegi
This paper analyses the evolution of the monetary policy stance, communication and credibility of the South African Reserve Bank (SARB) since 2000, when it adopted a flexible Inflation Targeting (IT) regime to facilitate the achievement of its price stability mandate. Empirical results indicate...
Jul 2019
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Credit frictions and co-movement of durable and non-durable goods in a small open economy

Hilary Patroba
In this paper I investigate, numerically, the co-movement puzzle by testing the ability of borrowing and lending constraints to counter the opposite movement of durable and non-durable goods in response to foreign monetary policy and international bond shocks. I do this by simulating a small open...
Feb 2018
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Changes in the Liquidity Effect Over Time: Evidence from Four Monetary Policy Regimes

Dawid Johannes van Lill
This paper employs a time-varying parameter vector autoregressive (TVP-VAR) model to establish the nature of the relationship between central bank liabilities and the overnight policy rate. Four countries with different monetary policy regimes were considered. It was found that a clear negative...
Aug 2017
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The impact of Monetary Policy Announcements and Political Events on the Exchange Rate: The Case of South Africa

Trust R. Mpofu and Amos C. Peters
Since 2000 the South African rand has been among the most volatile emerging market currencies, occasionally experiencing sharp depreciations. These sharp fluctuations in the value of the currency cannot be adequately explained by models of flow-supply and flow-demand of currency or by movements in...
Aug 2017
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