Otherwise, high inflation may become entrenched and inflation expectations might become unanchored. The longer the inflation shock persists, the higher the risk that this experience will leave scars in people's memories. In a speech I gave last year, I discussed such scarring effects in a little more detail.3 I pointed to recent studies which find evidence of this.
The political and social changes introduced in South Africa paved the way for the removal of international economic punitive actions that partly isolated the country’s economy from the rest of the world during the ten years preceding the fully democratic election of a Government of National Unity in April 1994.