Capital Flows Credit Markets And Growth In South Africa PDF Download
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Author | : Nombulelo Gumata |
Publisher | : Springer Nature |
Total Pages | : 385 |
Release | : 2019-12-11 |
Genre | : Business & Economics |
ISBN | : 303030888X |
Download Capital Flows, Credit Markets and Growth in South Africa Book in PDF, ePub and Kindle
This book examines the dynamics in capital flows, credit markets and growth in South Africa. The authors explore the role of global economic growth, policy shifts and various economic policy uncertainties. Central banks in advanced economies are engaged in unconventional monetary policy tools such as balance sheet policies, negative interest rates and extended forward guidance to assist them to meet their price, financial and macro-economic stability objectives. This book determines whether BRICS GDP growth is a source of shocks or an amplifier of global growth shocks. The authors find that global economic growth and policy uncertainty reinforce each other via capital flows, credit conditions and business confidence on the domestic economy. Furthermore, they demonstrate that there is momentum in the changes in the spread between the repo rate and federal funds rate. In addition, global real policy rates impact domestic GDP growth and labor market conditions. The authors examine the economic costs of capital flow surges, sudden stops and elevated portfolio volatility shocks and their interaction with GDP growth and credit. They show that equity and debt inflows matter in the attainment of the price stability mandate. Moreover, business confidence transmits sovereign credit ratings upgrades and downgrades shocks to the real economy via GDP growth, the cost of government debt and borrowing to impact credit growth. High GDP growth increases the likelihood of sovereign credit ratings upgrades, hence policymakers should implement pro-growth policies. Inflation regimes impact the transmission of positive nominal demand shocks to the price level. Low and stable inflation (inflation below 4.5 per cent) reduces the pass-through of positive nominal demand shocks to inflation.
Author | : Nombulelo Gumata |
Publisher | : Springer |
Total Pages | : 612 |
Release | : 2017-03-13 |
Genre | : Business & Economics |
ISBN | : 3319435515 |
Download Bank Credit Extension and Real Economic Activity in South Africa Book in PDF, ePub and Kindle
This book presents empirical evidence that supports and facilitates a practical, integrated approach to how bank regulatory and selected macro-prudential tools interact with monetary policy to achieve price and financial stability. The empirical results contained in various chapters accompany in-depth historical analysis and counterfactual scenarios that enable proper policy evaluation and the interaction of bank regulatory, macro-prudential and monetary policy tools in South Africa. The presented evidence also identifies financial asset boom and bust episodes and the associated costly output losses. In addition, the authors explore the amplification of credit dynamics by commodity prices and sector credit re-allocation due to capital inflows shocks. The book’s empirical analysis uses a wide range of statistical and econometric approaches on granular data and economic variables to derive policy implications and recommendations. This in-depth quantitative analysis includes determining inverse transmission of global liquidity, as well as the effects of capital flows, lending-rate margins, financial regulatory uncertainty, the National Credit Act, bank capital-adequacy ratios, bank loan loss provisions, loan-to-value ratios and repayment-to-income ratios on the macro-economy.
Author | : Rohit Goel |
Publisher | : International Monetary Fund |
Total Pages | : 37 |
Release | : 2021-10-22 |
Genre | : Business & Economics |
ISBN | : 1589065883 |
Download Analyzing Capital Flow Drivers Using the ‘At-Risk’ Framework: South Africa’s Case Book in PDF, ePub and Kindle
Cross-border capital flows are important for South Africa. They fund the nation’s relatively large external financing needs and have important financial stability implications evidenced by the large capital outflows and asset price selloffs during the COVID-19 pandemic. This paper adds to the literature on the drivers of South Africa’s capital flows by applying the ‘at-risk’ framework––which differentiates between the likelihood of “extreme” inflows (surges) and outflows (reversals) and of “typical” flows––to both nonresident and resident capital flows. Estimated results show that among nonresident flows, the portfolio debt component is most sensitive to changes in external risk sentiment particularly during reversals. This applies to flows to the sovereign sector. Nonresident equity flows, both portfolio and FDI, are most sensitive to domestic economic activity especially during surges. This applies to flows to the corporate and banking sectors. Results also suggest that resident flows, in particular the FDI component, tend to offset nonresident flows, thus acting as buffers against funding withdrawal during periods of global risk aversion.
Author | : Mr.Norbert Funke |
Publisher | : International Monetary Fund |
Total Pages | : 30 |
Release | : 2005-03-01 |
Genre | : Business & Economics |
ISBN | : 1451860595 |
Download The Composition of Capital Flows Book in PDF, ePub and Kindle
Over the past decade, South Africa has attracted relatively little foreign direct investment (FDI), but considerable amounts of portfolio inflows. In this context, the objective of the paper is twofold: to identify the determinants of the level and composition of capital flows to emerging markets and to draw policy conclusions for South Africa. We estimate a dynamic panel for up to 81 emerging markets using GMM (Generalized Method of Moments) techniques. The results suggest that further trade and capital control liberalization would increase the share of FDI. Additionally, a reduction in exchange rate volatility would affect the composition of capital flows in favor of FDI.
Author | : Mr.Nicolas E. Magud |
Publisher | : International Monetary Fund |
Total Pages | : 30 |
Release | : 2014-04-16 |
Genre | : Business & Economics |
ISBN | : 1484353463 |
Download Exchange Rate Flexibility and Credit during Capital Inflow Reversals Book in PDF, ePub and Kindle
We document the behavior of macro and credit variables during episodes of capital inflows reversals in economies with different degrees of exchange rate flexibility. We find that exchange rate flexibility is associated with milder credit growth during the boom but, even though smaller than in more rigid regimes, it cannot shield the economy from a credit reversal. Furthermore, we observe what we dub as a recovery puzzle: credit growth in economies with more flexible exchange rate regimes remains tepid well after the capital flow reversal takes place. This results stress the complementarity of macro-prudential policies with the exchange rate regime. More flexible regimes could help smoothing the credit cycle through capital surchages and dynamic provisioning that build buffers to counteract the credit recovery puzzle. In contrast, more rigid exchange rate regimes would benefit the most from measures to contain excessive credit growth during booms, such as reserve requirements, loan-to-income ratios, and debt-to-income and debt-service-to-income limits.
Author | : Gillian Dzangare |
Publisher | : |
Total Pages | : 272 |
Release | : 2012 |
Genre | : Capital movements |
ISBN | : |
Download The Effect of Private Capital Flows on Economic Growth in South Africa Book in PDF, ePub and Kindle
Author | : Cheikh A. Gueye |
Publisher | : International Monetary Fund |
Total Pages | : 39 |
Release | : 2014-03-26 |
Genre | : Business & Economics |
ISBN | : 1616358440 |
Download Managing Volatile Capital Flows: Experiences and Lessons for Sub-Saharan African Frontier Markets Book in PDF, ePub and Kindle
During the past three years the frontier markets of sub-Saharan Africa have received growing amounts of portfolio capital flows, with heightened interest from foreign investors. Compared with foreign direct investment, portfolio capital flows tend to be more volatile, and thus pose challenges for sub-Saharan African frontier markets. This study examines the evolution of capital flows since 2010 and discusses the policies these countries have designed to reduce risks from the inherent volatility of these flows.
Author | : Mthuli Ncube |
Publisher | : Palgrave Macmillan |
Total Pages | : 187 |
Release | : 2014-01-14 |
Genre | : Business & Economics |
ISBN | : 9781349561896 |
Download Global Growth and Financial Spillovers and the South African Macro-economy Book in PDF, ePub and Kindle
This book offers new quantitative insights into how South African economy reacts to external economic shocks. The analysis includes focusing on economic growth and financial spill over, effects of capital inflows, contrasting the stock market price returns and volatility on economic growth and determining the effects of financial stress.
Author | : Charles Amo Yartey |
Publisher | : International Monetary Fund |
Total Pages | : 38 |
Release | : 2008-02 |
Genre | : Business & Economics |
ISBN | : |
Download The Determinants of Stock Market Development in Emerging Economies Book in PDF, ePub and Kindle
This paper examines the institutional and macroeconomic determinants of stock market development using a panel data of 42 emerging economies for the period 1990 to 2004. The paper finds that macroeconomic factors such as income level, gross domestic investment, banking sector development, private capital flows, and stock market liquidity are important determinants of stock market development in emerging market countries. The results also show that political risk, law and order, and bureaucratic quality are important determinants of stock market development because they enhance the viability of external finance. This result suggests that the resolution of political risk can be an important factor in the development of emerging stock markets. The analysis also shows the factors identified above as determining stock market development in emerging economies can also explain the development of the stock market in South Africa.
Author | : Johannes Fedderke |
Publisher | : |
Total Pages | : 52 |
Release | : 1999 |
Genre | : Capital movements |
ISBN | : |
Download South African Capital Flows and Capital Flight Over the 1960-95 Period Book in PDF, ePub and Kindle