Demand factors count and ignoring them will preclude growth
Tito Mboweni and the Treasury’s dogged focus on fiscal multipliers is deeply erroneous and frozen in a corrupted conceptual structure
11 September 2020 - 14:47
Following parliament’s standing committee on finance’s near rejection of the supplementary budget, finance minister Tito Mboweni wrote an oped extolling structural reforms as a cure for a moribund economy.
His argument centred on three inter-meshed but analytically distinct issues. He reasoned that, with the current high debt levels, SA cannot spend its way to growth as fiscal multipliers are low and that potential growth has been slowing from 4% (2009) to 1% (2019)...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.