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The relationship between budget deficit and interest rates in South Africa: some econometric results

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  • Oludele Akinloye Akinboade

Abstract

This article investigates the budget deficit-interest rate relationships in South Africa, using two econometric methods: the London School and the Granger-causality methods. The results suggest that budget deficits have no effect on interest rates in South Africa. The causality results reinforce this finding by indicating that budget deficit and interest rates in this country are independent.

Suggested Citation

  • Oludele Akinloye Akinboade, 2004. "The relationship between budget deficit and interest rates in South Africa: some econometric results," Development Southern Africa, Taylor & Francis Journals, vol. 21(2), pages 289-302.
    • Handle: RePEc:taf:deveza:v:21:y:2004:i:2:p:289-302
    DOI: 10.1080/0376835042000219550
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