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Policy Bulletin 03: Macroeconomic policy options for a savings constrained economy: the case of South Africa

Economic growth requires delivering a credible fiscal consolidation plan that shifts spending towards investment in infrastructure, human capital accumulation and a environmentally sustainable economy. Fiscal policy has to move first, reducing risk premia and the neutral real rate, allowing monetary policy to respond beyond what has been able to do until now, constrained by the requirements of external financing, financial stability and inflation control. This virtuous coordination of monetary and fiscal policy is the necessary condition of any long term growth strategy.

 

Policy Bulletin 03
1 July 2020
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