Answer to Question #93641 in Macroeconomics for sibongiseni mpofu

Question

the core elements of growth employment and redistribution (GEAR) streategy of the South African government in 1996 ,under the leadership of then finance minister Trevor Manuel were amongst other things , bugdet reform to stregnthen the redistributive thrust of expenditure ,monetary policy to prevent a resurgence of inflation ,a reduction in tariffs to contain input prices and facilitate industrial restructuring ,compensatation partially for exchange rate depreciation. identify and define the macroeconomic variables that can be used to measure whether the strategy eas successful or not

Answer 1

1. bugdet reform to stregnthen the redistributive thrust of expenditure (redistribution of income and opportunities in favour of the poor) - The state budget, poverty level, minimum living wage
2. monetary policy to prevent a resurgence of inflation - inflation rate
3. a reduction in tariffs to contain input prices and facilitate industrial restructuring - commodity price level
4. compensatation partially for exchange rate depreciation - The rate of economic growth.

https://www.gov.za/national-budget-speech-trevor-manuel-minister-finance-12-march-1997