Stuck in low GEAR? South African Macroeconomic Policy, 1996-1998

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.

Citation

Weeks, J. (1999). Stuck in low GEAR? South African Macroeconomic Policy, 1996-1998. Cambridge Journal of Economics, 23(6), 795-811. https://doi.org/10.1093/cje/23.6.795

• Journal Article Type: Article
• Publication Date: Nov 1, 1999
• Deposit Date: Feb 24, 2009
• Journal: Cambridge Journal of Economics
• Print ISSN: 0309-166X
• Electronic ISSN: 1464-3545
• Publisher: Oxford University Press
• Peer Reviewed: Peer Reviewed
• Volume: 23
• Issue: 6
• Pages: 795-811
• DOI: https://doi.org/10.1093/cje/23.6.795