Alternative measures of exchange rates and exchange rate policy in South Africa

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Periodical article

Title:	Alternative measures of exchange rates and exchange rate policy in South Africa
Authors:	Holden, M.G. Holden, Paul
Year:	1985
Periodical:	South African Journal of Economics
Volume:	53
Issue:	4
Pages:	351-365
Language:	English
Geographic term:	South Africa
Subject:	terms of trade
External link:	https://doi.org/10.1111/j.1813-6982.1985.tb01015.x
Abstract:	Over the past several years the flexibility of exchange rate policy in South Africa has been increasing. With this greater variability it has become increasingly difficult to determine exactly what has been happening with the competitiveness of the economy, given the substantial fluctuations in the exchange rates of the major trading partners of South Africa and the difference in their rates of inflation. This paper examines some alternative measures of the exchange rate changes in order to determine exactly what has taken place in the period since the breakdown of the Bretton Woods system as well as to provide a framework for analysts seeking to make judgements about the appropriateness of the level of the exchange rate. It also discusses some of the issues surrounding the suitability of various exchange rate regimes for South Africa and measures whether in fact policy has become more flexible in the recent past. Notes, ref.