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Stuck in Low GEAR? Macroeconomic Policy in South Africa, 1996-98

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  • Weeks, John

Abstract

Despite its ideology while in opposition, once in power the ANC government implemented an orthodox macroeconomic policy which stressed deficit reduction and a tight monetary policy, combined with trade liberalisation. The stated purpose of this package (the Growth, Employment, and Redistribution programme, or GEAR) was to increase economic growth, with a 4.2% rate programmed for 1996-2000. At mid-term of the programme, growth remained far below this target. The GEAR's lack of success cannot be explained by unfavourable external factors; rather, the disappointing performance seemed the result of fiscal contraction and excessively high interest rates. Copyright 1999 by Oxford University Press.

Suggested Citation

  • Weeks, John, 1999. "Stuck in Low GEAR? Macroeconomic Policy in South Africa, 1996-98," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 23(6), pages 795-811, November.
  • Handle: RePEc:oup:cambje:v:23:y:1999:i:6:p:795-811
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    Cited by:

    1. Isaacs, Gilad, 2014. "The myth of “neutrality” and the rhetoric of “stability”: macroeconomic policy in democratic South Africa," MPRA Paper 54426, University Library of Munich, Germany.
    2. Mahmood, Haider & Chaudhary, A. R., 2013. "Impact of FDI on Income Inequality in Pakistan," MPRA Paper 109460, University Library of Munich, Germany.
    3. Duncan Hodge, 2009. "Growth, Employment And Unemployment In South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 77(4), pages 488-504, December.
    4. Stan Du Plessis & Ben Smit & Federico Sturzenegger, 2007. "The Cyclicality Of Monetary And Fiscal Policy In South Africa Since 1994," South African Journal of Economics, Economic Society of South Africa, vol. 75(3), pages 391-411, September.
    5. John Sender, 2000. "Struggles To Escape Poverty In South Africa: Results From A Purposive Rural Survey," Working Papers 107, Department of Economics, SOAS University of London, UK.
    6. Khoza, Keorapetse & Thebe, Relebogile & Phiri, Andrew, 2016. "Nonlinear impact of inflation on economic growth in South Africa: A smooth transition regression (STR) analysis," MPRA Paper 73840, University Library of Munich, Germany.
    7. Athanasios Koulakiotis & Katerina Lyroudi & Nicholas Papasyriopoulos, 2012. "Inflation, GDP and Causality for European Countries," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 18(1), pages 53-62, February.
    8. Mthokozisi Mlilo & Umakrishnan Kollamparambi, 2016. "Fiscal policy, employment, and output in South Africa: An open economy analysis," Journal of Economic and Financial Studies (JEFS), LAR Center Press, vol. 4(3), pages 11-23, June.

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