Answer to Question #93785 in Macroeconomics for Blossom

Question

The core elements of the Growth Employment and Redistribution (GEAR) strategy of the South African government in 1996, under the leadership of the then finance minister Trevor Manuel were amongst other things:  budget reform to strengthen 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, compensating partially for the exchange rate depreciation
1.1 With reference to the above, identify the macroeconomic objectives in these elements

Answer 1

These elements of the Growth Employment and Redistribution (GEAR) strategy were aimed at achieving the following macroeconomic objectives:

• fair distribution of income;
• price stability;
• equilibrium in balance of payments.