confidence in the KM would drop as people waited to see how any alternative monetary policy would work;  2  BIS Review 51/2001  ·  Currency Boards have worked well in other eastern European countries such as Latvia and Bulgaria.
However, the growth in real fixed capital formation and inventory investment accelerated. However, it was net inventory investment which slowed down the growth in aggregate spending in the fourth quarter of 2000. An acceleration in inventory levels followed in the first quarter of 2001. This suggests that producers are positive about South Africa’s future growth prospects and anticipate an increase in domestic demand.