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dc.contributor.advisorBurger, Philippe
dc.contributor.authorNdlovu, Duduzile
dc.date.accessioned2021-07-14T10:35:00Z
dc.date.available2021-07-14T10:35:00Z
dc.date.issued2020-11
dc.identifier.urihttp://hdl.handle.net/11660/11200
dc.description.abstractInterest in economic and monetary integration among groups of countries has been rising over the last three decades, with growing international interest emanating from the successful setup and launch of the EMU and the euro as the common currency of the EMU. Full monetary integration, the key focus of this study, entails setting up a regional central bank that is responsible for the formulation and implementation of monetary and exchange rate policies, having a single currency, as well as having formal regional surveillance of domestic economic (fiscal and structural) policies of the member countries. The Southern African Customs Union (SACU) incorporates an incomplete and asymmetric monetary union, the Common Monetary Area (CMA) and its journey towards the formation of a complete monetary union would involve preparatory stages of harmonising and linking macroeconomic and financial policies, institutions, and rules and regulations of the potential member countries. Therefore, this study explores whether or not there is an economic, monetary and fiscal policy case for the SACU region to become a fully-fledged monetary union by investigating the nature and degree of policy spillover effects and policy coordination across the region. Through four articles, the study employed various econometric techniques, which include principal component analysis, Johansen cointegration techniques, Vector Error Correction modelling (VECM), Granger causality testing, Structural Vector Autoregressive (SVAR) modelling, the Diebold-Yilmaz (DY) spillover index, the Set-theoretic approach (STA), and policy reaction functions to address the objectives. The main contribution of the study is the conclusion about the structure of monetary and fiscal policy management to establish whether or not there is an economic, fiscal and monetary policy case for SACU countries to move towards full monetary integration, as embodied in a monetary union. The major finding of the study is that, while monetary policy spillovers and the spillover effects seen through testing the South African dominance hypothesis make a case for monetary integration and a monetary union, the lack of coordination between fiscal and monetary policy means that fiscal and monetary policy coordination first needs to improve before a move can be made to monetary integration and union. This is particularly important if we see the threat that the lack of such coordination in the euro area made towards the existence of the euro area.en_ZA
dc.description.sponsorshipUniversity of the Free State (UFS) Postgraduate Schoolen_ZA
dc.language.isoenen_ZA
dc.publisherUniversity of the Free Stateen_ZA
dc.subjectThesis (Ph.D. (Economics))--University of the Free State, 2020en_ZA
dc.subjectSACU countriesen_ZA
dc.subjectMonetary policy spilloversen_ZA
dc.subjectFiscal policy spilloversen_ZA
dc.subjectMonetary and fiscal policy coordinationen_ZA
dc.subjectFinancial development spilloversen_ZA
dc.subjectVECMen_ZA
dc.subjectSet-theoretic approachen_ZA
dc.subjectPolicy reaction functionsen_ZA
dc.titleMonetary and fiscal policy spillover and coordination in the SACU areaen_ZA
dc.typeThesisen_ZA
dc.rights.holderUniversity of the Free Stateen_ZA


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