South Africa: Macro Policy Mix and Its Effects on Growth and the Real Exchange Rate--Empirical Evidence and GIMF Simulations
August 25, 2011
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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.
Subject: Expenditure, Financial services, Foreign exchange, Output gap, Production, Public debt, Real exchange rates, Real interest rates
Keywords: Africa, Asia and Pacific, countercyclical monetary policy, currency appreciation, DP, DPPP, exchange rate, Global, monetary policy reaction, Output gap, output-gap coefficient, reaction function, Real exchange rates, Real interest rates, terms of trade, World output gaps
Pages:
36
Volume:
2011
DOI:
Issue:
004
Series:
Departmental Paper No. 2011/004
Stock No:
SAMPEA
ISBN:
9781475510157
ISSN:
2616-5333
