It is now commonplace to argue that in South Africa, like many developing countries, higher wages will lower employment. This paper shows that it is difficult to extricate the relationship between wages, employment and output from the macropolicy environment. Dynamic computable general...

We reassess the effects of contractionary monetary policy on income inequality by investigating whether inflation targeting affects this nexus. Using data across the G12 economies from 1974 to 2019, we find that contractionary monetary policy shocks tend to increase disposable income inequality....