The second group are workers. Here it is often argued that more inflation would create more jobs for blue-collar workers. This is the old idea of the Phillips curve which has proven, except in very particular circumstances, to be wrong. First, some basic facts. For South Africa, the economy grows more strongly when inflation is low.
We will continue to monitor investor behavior closely, both domestically and internationally. 6  See Carol Bertaut and Alexandra Tabova (2014), “Reach for Yield versus Search for Safety,” unpublished paper, Board of Governors of the Federal Reserve System. 7  See Carol Bertaut, Alexandra Tabova, and Vivian Wong (2014), “The Replacement of Safe Assets: Evidence from the U.S.