Inflation Targeting Monetary Policy and Unemployment in South Africa

Maduku, Harris; Kaseeram, Irrshad

doi:10.22610/jebs.v10i4(j).2410

Cited by 6 publications

(4 citation statements)

References 9 publications

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“…It is also found that the fixed exchange rate regime has no impact on average inflation and inflation inertia, while inflation targeting has been successful at lowering both average inflation and inflation persistence. Maduku and Kaseeram (2018) analyse the impact of inflation, growth and exchange rate on unemployment in South Africa using 1980-2017 annual data spanning. Using the ARDL methodology they find that there is a negative long-run relationship between inflation and unemployment in South Africa and inflation is significant in explaining unemployment.…”

Section: Literature Reviewmentioning

confidence: 99%

Exchange Rate Targeting Versus Inflation Targeting: Empirical Analysis of the Impact on Employment and Economic Growth

Krušković¹

2020

Journal of Central Banking Theory and Practice

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This paper analyses the effects of two alternative monetary strategies (exchange rate targeting and inflation targeting) on economic growth and employment. On the panel of 18 countries for the period from 1996 to 2013, I tested the hypothesis that countries in exchange rate targeting have a higher rate of GDP growth and lower inflation rate. In order to test the impact of exchange rate policy on economic growth and prices, I applied dynamic panel two stepwise method of least squares (2SLS method) and they were evaluated by two independent regression equation. In order to allow the comparison of results related to exchange rate targeting, the effects of the introduction of inflation targeting in the unemployment rate were also estimated using the panel method two stepwise least squares (2SLS method). Results of empirical studies show that countries with inflation targeting have a lower rate of economic growth and higher unemployment.

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Section: Literature Reviewmentioning

confidence: 99%

Exchange Rate Targeting Versus Inflation Targeting: Empirical Analysis of the Impact on Employment and Economic Growth

Krušković¹

2020

Journal of Central Banking Theory and Practice

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“…However, in respect of country-specific studies in Africa, very few studies have been done on this phenomenon. For example, in Nigeria and South Africa, some related study has been carried out, respectively, see Essien et al (2016) and Maduku and Kaseeram (2018). As far as we know and based on empirical evidence reviewed, this study is a novel contribution to how monetary policy responds to unemployment and employers condition in SSA.…”

Section: Introductionmentioning

confidence: 88%

Unemployment and monetary policy: Evidence from Sub‐Saharan Africa

Onanuga

Omitogun

2020

Journal of Public Affairs

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In Sub-Sahara Africa, few studies have been conducted on how unemployment affects monetary policy in each country. Even an aggregate study of the phenomenon in Sub-Sahara Africa is near absent despite a high level of unemployment in the region. To investigate the empirical link between unemployment and monetary policy, the study employs a sample of 37 countries in Sub-Sahara Africa for the period 2011-2017. Data were obtained from the World Bank and International Monetary Fund database. Using the difference Generalized Method of Moments model, the study determines how monetary policy (using the lending rate as proxy) responds to unemployment, employer's condition and total labour force in Sub-Sahara Africa. We found that monetary policy indirectly responds to employer's condition, but the positive effect of the total labour force on monetary policy is relatively higher than total unemployment as a percentage of the labour force in the region. The study concludes that a linkage exists between monetary policy and employment indicators in Sub-Sahara Africa and therefore, made some policy recommendations.

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“…In their explanation, Keynesian explanation of unemployment explains the essence of insufficient expenditure because of demand deficiency (Nela, Muja and Metin, 2019). Applying this approach in the case of South Africa, literature suggests that this, causes the macroeconomic equilibrium to be below the full employment level (Harris and Irrshad, 2018).…”

Section: The Keynesian Approach To Phillips Curvementioning

confidence: 99%

Exploring the relationship between inflation and unemployment in South Africa

Azunna,

Botes

2024

IJRBS

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The paper investigates the relationship between inflation and unemployment in the South African setting, encompassing a comprehensive analysis of historical, theoretical, and empirical evidence. Existing literature surveys demonstrate that several studies have been conducted in multiple countries to ascertain the correlation between inflation and unemployment. The review incorporated the postulations of many economic schools of thought as they are applied to South Africa. The Phillips Curve was examined in accordance with the research purpose. The process involves gathering secondary data from reputable sources such as Statistics South Africa, the South African Reserve Bank, and other reliable secondary sources to analyse this relationship. The findings are presented using linear regression, tables, and figures. The study utilised annual inflation and unemployment data in South Africa spanning from 2000 to 2022 to elucidate the correlation between inflation and unemployment. The study discovered that the link was nonlinear and did not exhibit any meaningful association or correlation.

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Inflation Targeting Monetary Policy and Unemployment in South Africa

Cited by 6 publications

References 9 publications

Exchange Rate Targeting Versus Inflation Targeting: Empirical Analysis of the Impact on Employment and Economic Growth

Exchange Rate Targeting Versus Inflation Targeting: Empirical Analysis of the Impact on Employment and Economic Growth

Unemployment and monetary policy: Evidence from Sub‐Saharan Africa

Exploring the relationship between inflation and unemployment in South Africa

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