In light of this inherent uncertainty associated with the construction of a price index, one might be concerned that choosing and rigidly adhering to an inappropriate index could have negative economic consequences that might outweigh prospective benefits. Also, we must consider the ramifications of quantified goals in the context of our democracy.
In many countries, including South Africa, the output gaps that opened up in the wake of the 2008–09 recession have not closed, implying that unemployment rates remain stubbornly elevated by recent standards, and that an unusually large number of companies operate far below capacity. The nature of the imbalances that built up during the pre-recession boom largely explains this subdued, “L-shaped” recovery.