Titlebook: Labour Market and Fiscal Policy Adjustments to Shocks; The Role and Implica Nombulelo Gumata,Eliphas Ndou Book 2017 The Editor(s) (if appli

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Real Interest Rate Shock, Labour Productivity and the 6 per cent Inflation Thresholdl inflows reduce the pass-through of the impact of positive real interest rates on labour productivity. Gross capital inflows transmit real interest rate shocks to labour productivity differently when inflation is above the 6 per cent threshold than when it is below. In policy terms, this chapter sh

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Book 2017 aspects of labour market conditions and reforms and their link to inflation and inflation expectations, the impact of the national minimum wage, the interaction between public and private sector wage inflation, economic policy uncertainty and employment, government debt thresholds, sovereign yields

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The Impact of the Minimum Wage on Capital-Labour Ratio Dynamicsinflation regime than in the low inflation regime. The policy implication is that price stability matters for the response of the capital-output ratio to a positive shock to the minimum wage. The low-inflation regime is important to mitigate the heightened substitution effect of labour for capital following a positive minimum wage shock.

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Labour Market Reforms and the Price Stability Mandateandate. The policy implication is that price stability matters for the effectiveness of labour market reforms. At the same time, the labour market reforms stance supports the attainment of the price stability mandate. These policies re-inforce each other.

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