Part 1 Labour Market Characteristics and Monetary Policy

1: Introduction

2: Does the Beveridge Curve Exist in the South African Case, and What Are the Implications for Monetary Policy?

3: Does the Unemployment Invariance Hypothesis Hold in South Africa?

4: Does Price Stability Benefit from a Positive Shock in the Labour Force Participation Rate?

5: Is There an Inflation-GDP Growth-Employment Nexus in South Africa Within the 6 per cent Inflation Threshold?

Part 2 The Minimum Wage and Theoretical Predictions

6: Which Labour Market Structure Model Predictions Are Consistent with the Effects of a Minimum Wage on Inflation in South Africa?

7: The Minimum Wage, Income Inequality and the Price-Stability Mandate

8: The Efficiency Wage Hypothesis, Labour Productivity and the Minimum Wage

9: The Impact of the Minimum Wage on Capital-Labour Ratio Dynamics

Part 3 Labour Market Reforms and Price Stability

10: Labour Market Reforms and the Price Stability Mandate

11: Loosening in Collective Bargaining Impact on CPI and Inflation Expectations

12: Labour Market Reforms, Unit Labour Costs Shocks and Inflation Persistence

Part 4 Labour Market Conditions, Labour Productivity, Inflation Expectations and Monetary Policy

13: The Labour Market Conditions Channel in the Transmission of Positive Inflation and Inflation Expectation Shocks to the Repo Rate Reaction?

14: Real Interest Rate Shock, Labour Productivity and the 6 per cent Inflation Threshold

15: Capital Flow Surges and Sudden Stops Impact on the Sectorial Composition of Employment and Productivity Growth

16: Labour Productivity Growth and Inflation Expectations

Part 5 Labour Market Interactions with Selected Macroprudential Tools and Monetary Policy

17: Labour Market Conditions Shocks and Credit Growth

18: Weak Labour Productivity, Tight Credit Conditions and Monetary Policy

19: Labor Productivity and Labor Market Conditions Impact on Household Debt

20: Labour Market Reforms, Inflation Expectations and the Banks' Required Reserves Channel

Part 6 The Interaction Between the Public-Private Sector Wages and Employment Growth

21: Price Stability Impact on Wage Growth in the Public and Private Sectors

22: Public and Private Sector Employment and the Jobs Displacement Effects

23: Public-Sector Wages and Implications for the Budget Balance

24: The Economic Policy Uncertainty Channel and Employment Dynamics

Part 7 Nominal Wage Dynamics and Price Stability

25: The Inflation-Wage Spiral, Inflation Expectations and Monetary Policy

26: The 6 Per cent Inflation Threshold and the Transmission of Nominal Wage Shocks to Inflation Expectations

Part 8 The Fiscal Policy Taxation Channel

27: Do Government Debt Thresholds Impact the Transmission of Tax Shock Effects to GDP growth?

28: Fiscal Policy Variables Shock Impact on Inflation and GDP growth?

29: Income Tax Shocks and the Inflation-Output Volatility Trade-offs

30: Do Positive Tax Revenue Shocks Impact Financial and Credit Conditions?

31: Tax Revenue Shocks Effects on The Repo Rate and Inflation

Part 9 The Fiscal Policy Government Spending Cuts Channel

32: Does Government Spending Transmit Inflation to GDP growth?

33: Fiscal Spending Cut effects on CPI Inflation and Monetary Policy Cycles

Part 10 The Government Consumption Spending, Lending Spreads and the Cost of Borrowing Channels

34: Do Sovereign Yield Spreads Transmit Contractionary Fiscal Policy Shocks?

35: Fiscal Policy and Sovereign Spread Shocks: Risks and Policy Implications

36: How Potent Is the Output Channel of Borrowing Costs?

37: How Does a Positive Borrowing Costs Shock Impact Price Stability?

Part 11 Fiscal
About the Author:

Nombulelo Gumata is a part-time lecturer at the Centre for Education in Economics and Finance Africa. She is the co-author of Global Growth and Financial Spill-Overs and South African Economy and Bank Credit Extension and Real Economic Activity in South Africa: The Impact of Capital Flow Dynamics, Bank Regulation and Selected Macroprudential Tools.

Eliphas Ndou is an economist at the South African Reserve Bank and a lecturer at the University of the Witwatersrand, Johannesburg, South Africa. He is the co-author of Inflation Dynamics in South Africa: The Role of Thresholds, Exchange-rate Pass Through and Inflation Expectations on Policy Trade-offs and Monetary Policy and the Economy in South Africa.