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Nov 15, 2021 · Supply chain disruptions cause general economic disruption and key commodity shortages, which then in turn can, in fact, drive aggressive national behavior and international instability. And ironically, this reactive aggressive national behavior can happen even if the health of a national economy itself depends upon continued international ...
D VOLATILITY. IT MATTER?1 Introduction The South African rand has been relatively volatile as the currency has flexibly responded to do. estic and external disturbances. Domestic shocks have been relatively large in recent years, elevating rand volatility to above the VIX (US stock price volatility, a commonly used in. icator of global risk ...
External shocks also have important transmission channels––the rand is traded globally in large volumes, sometimes as a currency that proxies emerging market (EM) risks, and nonresident investors hold large shares of local assets. The relatively high rand volatility may have an implication for inflation. While the pass-
- Ken Miyajima
- 2019
“What’s more, South African rand’s volatility has received a bad rap, perhaps in most cases rightfully so, but is has also acted as an important automatic stabiliser in times of external shocks.
Feb 21, 2008 · The net gains of a monetary union to its members hinge on how well the members adjust to external shocks, such as changes in the value of export commodities. Two variables that affect the adjustment process are whether the shocks affect the member countries equally or differently and whether the policy and institutional framework of the union facilitates adjustment.
recent years, the South African rand has been on the back foot against major currencies, with investors wary about the country’s subdued growth, weak fiscal outlook, rising industrial and social tensions, and external vulnerabilities associated with the current account deficit financed largely through non-FDI inflows.
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Jan 21, 2020 · After the 2008 financial crisis, research and policy focused on the risk that heavily interconnected networks could fuel the spread of economic crises—a problem known as systemic risk. A new analysis considers systemic risk in other sectors like technology, telecommunications, and health care.
