The impacts of public expenditure innovations on real exchange rate volatility in South Africa

This study investigates the impacts of public expenditure innovations on exchange rate volatility in South Africa using quarterly data for period 1970–2019. To achieve this objective, a version vector autoregressive impulse response model proposed by Jordà is employed and are identified recursively. The functions indicate that innovation has significant depreciating trend impact volatility, its relies type fiscal innovation. While does not rely direction innovation, it varies according to state economy. Public upturn state, mostly an appreciating downturn state. greater than