South Africa's New Growth Path (NGP) proposed that a depreciation of the Rand would significantly stimulate economic growth. In addition to a depreciated Rand, the NGP stated that the South African Reserve Bank was to continue to target low stable inflation as well as maintain a low interest rate environment to encourage investment. This book sought to investigate how movements of the exchange rate affect real GDP, prices and interest rates. To accomplish this, a thorough literature review and empirical investigation was conducted. To assess how real GDP, prices and interest rates respond to...