Exchange Rate Movements and the South African Economy

Focusing on the economic implications of the Rand's depreciation, this research investigates its effects on South Africa's real GDP, prices, and interest rates. Utilizing a VARX model and various analytical methods, the study reveals that while real GDP responds positively to a weaker Rand, both prices and interest rates tend to rise simultaneously. Through a combination of literature review and empirical analysis, the book provides insights into the intricate dynamics between exchange rate movements and economic indicators in South Africa.