Departmental Papers

South Africa: Macro Policy Mix and Its Effects on Growth and the Real Exchange Rate--Empirical Evidence and GIMF Simulations

Author/Editor:

Jorge I Canales Kriljenko

Publication Date:

August 25, 2011

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

This paper examines whether a mix of tighter fiscal policy, looser monetary policy, and greater reserve build-up would increase growth and depreciate the rand in real terms. The experience of South Africa over the last twenty years is looked at using a number of econometric techniques that control for the external environment.

Series:

Departmental Paper No. 2011/004

Subject:

Expenditure Financial services Foreign exchange Output gap Production Public debt Real exchange rates Real interest rates