The unwinding of the extraordinary monetary policy actions of the past by the US Fed is taking us all into unknown territory, and there is no history or precedent to guide us. Emerging economies had to deal with the spillover effects of monetary accommodation in the advanced economies, and the challenges to be faced by their reversal will be no less daunting.
However, while the adjustment will be difficult, I believe that emerging economies in general, including South Africa, are more resilient and better equipped to respond to such challenges than was the case in the past.