SA displays profound misunderstanding of macroeconomics
There are no economic reasons for the Reserve Bank’s failure to intervene to serve and save this economy at such a crucial moment
As SA awaits the government’s next economic move there is considerable disquiet about the efficacy of the existing R500bn relief package and what will be announced next. Finance minister Tito Mboweni puts the package at R800bn.
However, reading through macro-economic lenses of both the president’s R500bn economic package and the combined noises made by the National Treasury and the Reserve Bank, one finds a horrifyingly contradictory and intellectually incoherent approach to the macro-economic management of this economy...