As with the East Asian countries, excessive increases in bank credit extension and in the money supply, and unrealistic interest and exchange rates, or unacceptable fiscal deficits, were severely punished. South Africa will have to learn to live with, and to adapt to, these market disciplines.
This country can not on a permanent basis maintain lower interest rates than those ruling in most of the other emerging markets. Our inflation rate will have to be reduced to come more in line with the average rate of inflation in the economies of our major trading partners and international competitors.