There’s growing talk that South Africa’s government could introduce a fiscal rule at this week’s Budget. If so, this would strengthen fiscal credibility and help to lock-in the recent falls in local currency bond yields. But the experience from other EMs is that fiscal rules can be gamed and, in South Africa’s case, it’s not clear if such a rule could commit any future government to fiscal consolidation.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services