Exchange Rate Movements and the South African Economy

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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.