M.Com. (Economics) / The purpose of this dissertation was to investigate the contribution of the world economy to instability in the South African economy via inflation. Double digit inflation in the South African economy remains the most important and' sole major problem influencing stabilization policy in the country. This study concentrated on the instability of the economic growth path in South Africa since the recession period of 1976. From a multiplier-accelerator model the conclusion is reached that two of the main endogenous variables in the economy, namely private consumption and total investment have adapted to behaviour patterns since 1977, in such a way that an economic growth path which deviates monotonically from the equilibrium paths has been guaranteed. The. reason for this is found in the values of two main coefficients namely the propensity to consume and the propensity to invest. The openness of the South African economy is an exogenous threat to stability in the South African economy if a high inflation rate persists.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:uj/uj:13220 |
| Date | 09 February 2015 |
| Source Sets | South African National ETD Portal |
| Detected Language | English |
| Type | Thesis |
| Rights | University of Johannesburg |
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