Wage inequality under inflation-targeting in South Africa

Abstract

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Monetary policy in South Africa, 2007–21

“…Monetary expansion when the output gap is large can somewhat reduce inequality, whereas the opposite may be true if the output gap is not large (Honohan 2019). Averaging over the business cycle, Merrino (2021) concludes that countercyclical monetary policy in South Africa has lowered wage inequality. 29…”