In sum, during the current recovery phase, we have seen the mechanism in place by which labor shortages exert upward pressure on wages, which encourages firms to raise sales prices and work toward raising labor productivity. In this regard, the current recovery is more like the Izanagi and Heisei booms rather than the recovery in the mid-2000s.
The adjustments that have occurred in the South African economy, and on South African monetary policies during the past few years, were necessary and timely. These adjustments were needed to restore and maintain overall economic equilibrium. South Africa has increasingly developed robust financial, economic and foreign exchange markets. This latter market is growing rapidly and its daily average turnover now exceeds $ billion.