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Reflections on the South African Rand Crisis of 1996 and its Consequences.

Abstract:

After South Africa's democratic elections in 1994, large capital inflows were induced by the cessation of trade and financial sanctions, improved creditworthiness and a liberalised capital account for foreigners. The flows were managed in a classic trade-off between currency stability, and raised interest rates to counter inflation resulting from a credit boom and partially sterilised intervention. In early 1996, the currency suffered a speculative attack. Using a theoretical model of currenc...

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Publisher:
CSAE
Series:
Working Paper Series
Publication date:
1999-01-01
Language:
English
UUID:
uuid:bac6c41b-58a2-417c-970b-86ef1e2805bc
Local pid:
oai:economics.ouls.ox.ac.uk:14515
Deposit date:
2011-08-16

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