South Africa: Selected Issues
January 23, 2003
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This Selected Issues paper estimates an equilibrium path for South Africa’s real effective exchange rate. The paper briefly describes the dynamics of the real exchange rate and its determinants. It investigates the presence of a long-term relationship between the real exchange rate and certain explanatory variables, estimates the speed at which the real exchange rate converges toward its equilibrium level, and derives measures for the equilibrium real exchange rate. The paper also examines the real money demand, consumer prices, and the real exchange rate in South Africa.
Subject: Balance of payments, Fiscal policy, Fiscal stance, Foreign direct investment, Foreign exchange, Production, Production growth, Real exchange rates, Total factor productivity
Keywords: Africa, CR, debt ratio, differentials vis-à-vis trading-partner country, exchange rate pass-through calculation, FDI inflow, Fiscal stance, Foreign direct investment, GDP, Global, growth rate, inflation equation, ISCR, job skill, price, Production growth, production-function approach, Real exchange rates, Total factor productivity
Pages:
103
Volume:
2003
DOI:
Issue:
018
Series:
Country Report No. 2003/018
Stock No:
1ZAFEA0022003
ISBN:
9781451840995
ISSN:
1934-7685
