For example, if a view spreads among the public that prices will rise in the future, firms would likely raise the prices of products and services accordingly, and wages would also be raised. Consequently, consumer prices would be pushed up.
Seventhly, the normalisation of relations with the rest of the world made it unnecessary to follow restrictive fiscal and monetary policies to maintain a surplus on the current account of South Africa’s balance of payments and created a leeway for the promotion of economic growth.