The impact of monetary policy on the economic growth of a small and open economy: The case of South Africa
South African Journal of Economic and Management Sciences
Field | Value | |
Title | The impact of monetary policy on the economic growth of a small and open economy: The case of South Africa | |
Creator | Khabo, V Harmse, C | |
Description | This study evaluates the impact of monetary policy on the economic growth of a small and open economy like that of South Africa. Structuralists contend that changes in money supply (M3) and inflation (CPI) are not significantly related to changes in economic growth (GDP), while orthodox economists argue that they are. Stucturalists also hold that monetary authorities cannot control M3, whereas orthodox economists believe they can. To structuralists, when monetary authorities pursue an expansionary policy, the opposite effect is achieved. Orthodox economists counter this argument. The ADT test statistic against the McKinnon critical values was used and it was found (i) that money supply changes and inflation are significantly related to changes in economic growth, and (ii) whereas monetary authorities can control M3 through the repo rate, they cannot keep it within set targets. | |
Publisher | AOSIS Publishing | |
Date | 2014-08-19 | |
Identifier | 10.4102/sajems.v8i3.1201 | |
Source | South African Journal of Economic and Management Sciences; Vol 8, No 3 (2005); 348-362 2222-3436 1015-8812 | |
Language | eng | |
Relation |
The following web links (URLs) may trigger a file download or direct you to an alternative webpage to gain access to a publication file format of the published article:
https://sajems.org/index.php/sajems/article/view/1201/604
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