Examining the Effect of Financial Markets Shocks on Financial Stability in South Africa
The paper analyzed the impact of financial market shocks on financial market stability. The goal was achieved by employing quarterly time-series data spanning from 2003:Q1 to 2020:Q4. The study used various econometric techniques such as stationarity, determining optimal lag length, cointegration a...
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| Format: | Article |
| Language: | English |
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EconJournals
2022-11-01
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| Series: | International Journal of Economics and Financial Issues |
| Subjects: | |
| Online Access: | https://econjournals.com/index.php/ijefi/article/view/13452 |
| _version_ | 1797910282202251264 |
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| author | Tshembhani M. Hlongwane Johannes P. S. Sheefeni |
| author_facet | Tshembhani M. Hlongwane Johannes P. S. Sheefeni |
| author_sort | Tshembhani M. Hlongwane |
| collection | DOAJ |
| description |
The paper analyzed the impact of financial market shocks on financial market stability. The goal was achieved by employing quarterly time-series data spanning from 2003:Q1 to 2020:Q4. The study used various econometric techniques such as stationarity, determining optimal lag length, cointegration analysis, estimating a vector error correction model, impulse response functions and forecast error variance decomposition. Following this, the long run relationship amongst the variables was established. The findings revealed that inflation has a negative impact on financial stability in both the short and long run. Lastly, it was only the shocks in economic activities that was found to have a significant impact on financial stability.
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| first_indexed | 2024-04-10T11:21:52Z |
| format | Article |
| id | doaj.art-1402bfec25334dcaa0c488bc4d1075f5 |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T11:21:52Z |
| publishDate | 2022-11-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-1402bfec25334dcaa0c488bc4d1075f52023-02-15T16:18:33ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382022-11-0112610.32479/ijefi.13452Examining the Effect of Financial Markets Shocks on Financial Stability in South AfricaTshembhani M. Hlongwane0Johannes P. S. Sheefeni1Department of Economics, University of the Western Cape, Bellville, 7535, South Africa.Department of Economics, University of the Western Cape, Bellville, 7535, South Africa. The paper analyzed the impact of financial market shocks on financial market stability. The goal was achieved by employing quarterly time-series data spanning from 2003:Q1 to 2020:Q4. The study used various econometric techniques such as stationarity, determining optimal lag length, cointegration analysis, estimating a vector error correction model, impulse response functions and forecast error variance decomposition. Following this, the long run relationship amongst the variables was established. The findings revealed that inflation has a negative impact on financial stability in both the short and long run. Lastly, it was only the shocks in economic activities that was found to have a significant impact on financial stability. https://econjournals.com/index.php/ijefi/article/view/13452Financial stabilityfinancial marketsConsumer Price Index.Money supply |
| spellingShingle | Tshembhani M. Hlongwane Johannes P. S. Sheefeni Examining the Effect of Financial Markets Shocks on Financial Stability in South Africa International Journal of Economics and Financial Issues Financial stability financial markets Consumer Price Index. Money supply |
| title | Examining the Effect of Financial Markets Shocks on Financial Stability in South Africa |
| title_full | Examining the Effect of Financial Markets Shocks on Financial Stability in South Africa |
| title_fullStr | Examining the Effect of Financial Markets Shocks on Financial Stability in South Africa |
| title_full_unstemmed | Examining the Effect of Financial Markets Shocks on Financial Stability in South Africa |
| title_short | Examining the Effect of Financial Markets Shocks on Financial Stability in South Africa |
| title_sort | examining the effect of financial markets shocks on financial stability in south africa |
| topic | Financial stability financial markets Consumer Price Index. Money supply |
| url | https://econjournals.com/index.php/ijefi/article/view/13452 |
| work_keys_str_mv | AT tshembhanimhlongwane examiningtheeffectoffinancialmarketsshocksonfinancialstabilityinsouthafrica AT johannespssheefeni examiningtheeffectoffinancialmarketsshocksonfinancialstabilityinsouthafrica |