In a very complex world, where the complexity of reality cannot be adequately captured by any single model and where uncertainty is an important element to take into account in any decision, there is also need for judgement by the policymaking bodies in taking policy decisions, particularly in assessing the likelihood of certain hypothetical scenarios potentially materialising.
Turning to the external sector, the rand's fortunes appear to have turned somewhat and the weighted exchange rate of the rand has recovered by some 13,45 per cent from 31 December 2001 to 7 May 2002. South Africa's foreign trade balance – our exports minus our imports - was adversely affected by the slowdown in the world economy.