In this way globalisation creates opportunities to increase international trade, economic growth, employment creation and welfare. Unfortunately, like all good things in life, globalisation also has certain disadvantages. In particular, the integration of South Africa into the world economy has made the country more vulnerable to external shocks. These can take the form of supply, demand and financial shocks.
In such an uncertain 11  BIS Review 71/2000  environment the pursuit of financial stability has become even more imperative. Although stability does not provide unconditional protection against reversals in international capital flows, it does forestall uncertainties on the monetary front and can counter excessive volatility. The Reserve Bank therefore remains determined to maintain financial stability in South Africa.