nep-afr New Economics Papers
on Africa
Issue of 2005‒11‒19
two papers chosen by
Suzanne McCoskey
Foreign Service Institute, US Department of State

  1. Capital controls, two-tiered exchange rate systems and exchange rate policy : the South African experience By Schaling,Eric
  2. Civil War and Economic Sanctions: Analysis of Anthropometric Outcomes in Burundi By Tom Bundervoet; Philip Verwimp

  1. By: Schaling,Eric (Tilburg University, Center for Economic Research)
    Abstract: South Africa's 40 years of experience with capital controls on residents and non-residents (1961-2001) reads like a collection of examples of perverse unanticipated effects of legislation and regulation. We show that the presence of capital controls on residents and non-residents, enabled the South African Reserve Bank (SARB) to target domestic interest rates (and or the exchange rate) via interventions in the (commercial) foreign exchange market. This provides an early rationale for anchoring SA monetary policy via the exchange rate, rather than via domestic interest rates. This suggests not only that the capital controls themselves exhibited substantial institutional inertia, but that this same institutional inertia also applied to the monetary policy regime. A plausible reason for this is that for most of the 20th century in South Africa (partial) capital controls and exchange rate based monetary policies were like Siamese twins; almost impossible to separate.
    Keywords: capital controls;exchange rate mechanism
    JEL: E42 E61 E65 F32 F33 F41
    Date: 2005
  2. By: Tom Bundervoet (Vrije Universiteit Brussel); Philip Verwimp (Institute of Social Studies)
    Abstract: This paper investigates the impact of the latest civil war and the subsequent economic embargo in Burundi on the health status of the Burundese children. We find that the civil war and the economic embargo had a particularly detrimental impact on the nutritional status of rural populations, due to a direct effect of the civil war and to the soaring of food prices during the embargo. A rural Burundese child who was affected by both shocks had a height-for-age of 1 standard deviation lower compared to a similar child who did not suffer from these 2 events. These shocks seem not to have affected the health status of urban children. In the analyses, we control for a variety of household and community characteristics using data from the 1998 household Priority Survey.
    Date: 2005–09

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