Economic Policy Center

Strengthening Fiscal Stability in Lesotho: Modeling SACU Volatility, Structuring a Fiscal Stabilization Fund, and Creating a DSGE Model

About Us

SACU is the world’s oldest customs union, uniting five countries under its common revenue pool. Although South Africa holds the largest influence in the bloc, LEDCs such as Lesotho benefit and rely heavily on SACU receipts to fund its government budget. Working directly in collaboration with the Central Bank of Lesotho, we will assist in research, modelling, data analysis, and policy writing in order to analyse SACU transfer shocks, and to strengthen fiscal stability in Lesotho. This project will culminate in a final report and economic models presented to the Central Bank board and Lesotho government policymakers.

Please contact hyren.gan@yale.edu or d.guo@yale.edu with any questions!