In a normal recovery phase, new risk-taking activities increase against the background of positive interaction between the real and monetary side of an economy. However, this pattern does not seem to hold in the current situation because the financial system, still plagued by non-performing loans, is not sufficiently robust to propel the recovery of the real economy.
Other scholars have expanded this to a fall greater than one standard deviation, with the added requirement that the decline in inflows must exceed 5% of GDP, to exclude cases where low volatility  2  BIS central bankers’ speeches  produces small standard deviations.1 By either definition, this has never happened in democratic South Africa.