South Africa remains committed to gradual exchange control liberalisation, but there are times when the authorities are concerned by the fickleness of international capital flows, and, I dare to say, by pure speculative transactions by non-residents in our markets.
For competition to have a control function, prices must be stable. Eucken thus stressed the “primacy of monetary policy”. He also noted the importance of central rights and obligations for a competitive economy: open markets, rights to private property, freedom of contract and the principle of liability, which I have already mentioned. He defines liability as an essential regulatory policy institution.