The article examines how monetary and fiscal policies impact South Africa's economy. By using a specific method to analyze policy shocks, the researchers found that tightening monetary policy leads to lower economic activity and a weaker exchange rate. They also discovered that government spending has a positive effect on the economy, with an initial multiplier of 0.20 that later increases to 0.40. Tax changes, on the other hand, do not have a significant impact. The study highlights the importance of coordination between monetary and fiscal policies for making effective economic decisions in South Africa.