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Inflation and the role of wages in South Africa: A co-integration analysis

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Author Info
Ben Smit
Stan du Plessis () (University of Stellenbosch)

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Abstract

An explanation of inflation that focuses on the costs of production, wages (or unit labour costs) plays a central role. In South Africa, the recent change to an inflation-targeting monetary policy framework and the relative strong role of trade unions has increased the need to understand and quantify the interaction between inflation and wages. The purpose of the working paper is to investigate this relationship empirically, on both the aggregate and sectoral levels, using multivariate co-integration techniques.

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File URL: http://www.commerce.uct.ac.za/Research_Units/dpru/WorkingPapers/PDF_Files/wp53.pdf
File Format: application/pdf
File Function: First version, 2001
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Publisher Info
Paper provided by University of Cape Town, Development Policy Research Unit in its series Working Papers with number 9669.

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Length: 79 pages
Date of creation: Sep 2001
Date of revision:
Publication status: Published in Working Paper Series by the Development Policy Research Unit, September 2001, pages 1-79
Handle: RePEc:ctw:wpaper:9669

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Web page: http://www.commerce.uct.ac.za/Research_Units/DPRU/
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Related research
Keywords: South Africa: wages; unit labour costs; costs of production;

Find related papers by JEL classification:
A1 - General Economics and Teaching - - General Economics

References listed on IDEAS
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  1. Hendry, David F, 1985. "Monetary Economic Myth and Econometric Reality," Oxford Review of Economic Policy, Oxford University Press, vol. 1(1), pages 72-84, Spring.
  2. Hendry, David F, 1986. "Using PC-GIVE in Econometrics Teaching," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 48(1), pages 87-98, February.
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This page was last updated on 2010-1-1.

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