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dc.contributor.author | Beyers, Conrad F.J.![]() |
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dc.contributor.author | Essel-Mensah, Kojo A.![]() |
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dc.contributor.author | Tsomocos, Dimitrios P.![]() |
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dc.date.accessioned | 2024-11-19T13:08:47Z | |
dc.date.available | 2024-11-19T13:08:47Z | |
dc.date.issued | 2024-12 | |
dc.description.abstract | The South African Reserve Bank (SARB) uses interest rates to control inflation. The Computable General Equilibrium (CGE) model can contribute to inflation targeting objective and also determine the effects on banks and the economy. We improved the accuracy of the results from previous work on the banking sector CGE model by estimating the elasticities of the reduced form equations of the model instead of arbitrarily choosing them. Our results conform with the established view that lower policy rates lead to an increase in inflation and a reduction in banks’ profits. However, because of the adverse supply shocks arising from the effects of the COVID-19 pandemic, the increase in the GDP is crowded out. The CGE model is a useful tool for the SARB for monetary policy implications on financial stability, informing and providing analysis on its repo rate decision, and determining the consequent effects on the economy. | en_US |
dc.description.department | Insurance and Actuarial Science | en_US |
dc.description.department | Mathematics and Applied Mathematics | en_US |
dc.description.librarian | am2024 | en_US |
dc.description.sdg | SDG-01:No poverty | en_US |
dc.description.sponsorship | ABSA Chair in Actuarial Science; University of Pretoria; Czech Science Foundation. | en_US |
dc.description.uri | http://wileyonlinelibrary.com/journal/saje | en_US |
dc.identifier.citation | Beyers, C., Essel-Mensah, K.A. & Tsomocos, D.P. (2024) A computable general equilibrium model of the monetary policy implications for financial stability in South Africa. South African Journal of Economics, vol. 92, no. 4, pp. 415-443. Available from: https://DOI.org/10.1111/saje.12383. | en_US |
dc.identifier.issn | 0038-2280 (print) | |
dc.identifier.issn | 1813-6982 (online) | |
dc.identifier.other | 10.1111/saje.12383 | |
dc.identifier.uri | http://hdl.handle.net/2263/99188 | |
dc.language.iso | en | en_US |
dc.publisher | Wiley | en_US |
dc.rights | © 2024 The Author(s). South African Journal of Economics published by John Wiley & Sons Ltd on behalf of Economic Society of South Africa. This is an open access article under the terms of the Creative Commons Attribution-NonCommercial-NoDerivs License. | en_US |
dc.subject | Banks’ profit | en_US |
dc.subject | Inflation | en_US |
dc.subject | Monetary policy | en_US |
dc.subject | Repo rate | en_US |
dc.subject | SDG-01: No poverty | en_US |
dc.subject | South African Reserve Bank (SARB) | en_US |
dc.subject | Computable general equilibrium (CGE) | en_US |
dc.subject | Gross domestic product (GDP) | en_US |
dc.title | A computable general equilibrium model of the monetary policy implications for financial stability in South Africa | en_US |
dc.type | Article | en_US |