This paper assesses the long-term relationship between consumption spending and stock market wealth in the context of the life-cycle hypothesis in South Africa. A distinction is made between the expected and unexpected changes in stock market wealth and their effects on consumption spending. The...

This paper examines the impact of the monetary policy instrument, the repo rate, mainly on output gap and inflation rate in South Africa, over the period 1998– 2008. Use is made of a simple structural vector autoregressive (SVAR) framework in assessing the impulse response functions (IRFs) of...

This paper provides an estimation of the relationship between the forward exchange rate and the future spot rate under the hypothesis of adaptive parameter updating. The Kalman filter technique is used for this end. The better performance of the Kalman filter technique over the random walk and...

This paper assesses the degree of financial integration between South Africa and the United States of America to infer South African’s financial integration into the world economy. The analysis is based on the covered interest parity whereby the mean reverting property of the covered interest...