Are we just witnessing a temporary correction of financial markets amid an otherwise benign economic environment, or are disruptions large enough to challenge global expansion, especially in emerging economies? If more severe challenges were to occur, would there be sufficient global cooperation to deal with them in a cohesive manner?
I certainly will not pretend to have clear answers to these questions, but will try to provide some perspective, looking specifically at how the changing in global environment is affecting South Africa and South African Reserve Bank’s (SARB) reaction thereto. I will also pay attention to the challenges facing the rest of Sub-Saharan Africa and what to possibly expect next.