• Corpus ID: 155148334

Labour Market and Monetary Policy in South Africa

  title={Labour Market and Monetary Policy in South Africa},
  author={Vincent Dadam and Nicola Viegi},
This paper analyses the in‡fluence of the South African labour market on the conduct of monetary policy. Because of the weak response of wages to changes in employment, the South African Reserve Bank is confronted by an unfavourable short run unemployment-in‡flation trade off that complicates the implementation of the in‡flation targeting framework. First we provide some reduced form evidence by estimating a form of the traditional wage Phillips curve, showing the weak relationship between… 

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