Prior financial excesses would be highly likely to play a part in worsening any downturn if and when it occurred; having avoided the worst of such excesses is a big help. We can further add that fiscal policy expansion during 2000 was remarkably well-timed from the perspective of stabilising the business cycle.
Advantages of inflation targeting What are the advantages of inflation targeting for South Africa? Firstly, inflation targeting can improve the coordination between monetary policy and other macroeconomic policies depending on the way the target is set and whether the target is consistent with other policy objectives.