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A Simple Macroeconomic Framework for South Africa

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  • Brixen, Peter
  • Tarp, Finn

Abstract

This paper presents a number of policy experiments carried out within a modelling framework, which can be characterized as a merger of the financial programming and the revised minimum standard models, associated with respectively the International Monetary Fund and the World Bank. The baserun underlying the policy simulations is a six- year projection of the South African economy based on moderately optimistic assumptions about economic growth and the inflow of foreign capital. It clearly transpires that the choice of financing source of expanded government activity can matter a great deal for economic outcomes, and also changes in the composition of government spending can affect real output and other macroeconomic variables. Yet, the framework is ill-suited to analyze policies for export promotion.

Suggested Citation

  • Brixen, Peter & Tarp, Finn, 1994. "A Simple Macroeconomic Framework for South Africa," MPRA Paper 62280, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:62280
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    References listed on IDEAS

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    1. Edwards, Sebastian, 1989. "The international monetary fund and the developing countries: A critical evaluation," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 31(1), pages 7-68, January.
    2. Khan, Mohsin S. & Montiel, Peter & Haque, Nadeem U., 1990. "Adjustment with growth : Relating the analytical approaches of the IMF and the World Bank," Journal of Development Economics, Elsevier, vol. 32(1), pages 155-179, January.
    3. Brixen, Peter & Tarp, Finn, 1996. "South Africa: Macroeconomic perspectives for the medium term," World Development, Elsevier, vol. 24(6), pages 989-1001, June.
    4. Everaert, Luc & Garcia-Pinto, Fernando & Ventura, Jaume, 1990. "A RMSM-X model for Turkey," Policy Research Working Paper Series 486, The World Bank.
    5. J. J. Polak, 1957. "Monetary Analysis of Income Formation and Payments Problems," IMF Staff Papers, Palgrave Macmillan, vol. 6(1), pages 1-50, November.
    6. Vines, David, 1990. "Growth Oriented Adjustment Programs: A Reconsideration," CEPR Discussion Papers 406, C.E.P.R. Discussion Papers.
    7. Jacques J. Polak, 1990. "A Marriage between Fund and Bank Models? Comment on Khan and Montiel," IMF Staff Papers, Palgrave Macmillan, vol. 37(1), pages 183-186, March.
    8. Sebastian Edwards, 1989. "The International Monetary Fund and the Developing Countries: A Critical Evaluation," NBER Working Papers 2909, National Bureau of Economic Research, Inc.
    9. Hollis Chenery† & T.N. Srinivasan (ed.), 1989. "Handbook of Development Economics," Handbook of Development Economics, Elsevier, edition 1, volume 2, number 2.
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    Cited by:

    1. Ramaharo, Franck M., 2021. "A simple macroeconomic framework for Madagascar," MPRA Paper 112092, University Library of Munich, Germany.

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    More about this item

    Keywords

    Macroeconomic policy modelling; financial programming; revised minimum standard modelling; South Africa;
    All these keywords.

    JEL classification:

    • C54 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Quantitative Policy Modeling
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook

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