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A Simple Macroeconomic Framework for South Africa

Author

Listed:
  • Peter Brixen

    (Danish Economic Council)

  • Finn Tarp

    (Institute of Economics, University of Copenhagen)

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 mderately 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

  • Peter Brixen & Finn Tarp, 1995. "A Simple Macroeconomic Framework for South Africa," Discussion Papers 95-15, University of Copenhagen. Department of Economics.
    • Handle: RePEc:kud:kuiedp:9515
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    Cited by:

    1. is not listed on IDEAS
    2. Ramaharo, Franck M., 2021. "A simple macroeconomic framework for Madagascar," MPRA Paper 112092, University Library of Munich, Germany.

    More about this item

    Keywords

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    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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