The inflow of capital into South Africa The macroeconomic argument for the removal of exchange control is based on the assumption that, on balance, in a liberalised economy, over time capital inflows will exceed outflows.
Indeed, the temptation to seek a “quick fix”, an easy, politically “painless” solution – we hear this kind of talk repeatedly in debates about the role of the central banks – is nothing short of dangerous. The “acute measures” such as the provision of funds from the rescue packages, offer pain relief.