Author Archives: riskbusters4

There certainly is a way forward

South Africa did indeed face challenges the last few months that it didn’t in the years passed.  From the Marikana debacle, other gold and platinum mine strikes, transport strikes, political unrest with the near coming Mangaung as well as a few downgrades from Moody’s.  This all contributes to investors losing confidence in South Africa.  As […]

The drawbacks of the NDP and NGP

There has been much said about the National Development Path (2011) and the New Growth Path (2010). These two initiatives did not happen overnight. The goal of the NGP is to create 5 million jobs by 2020.  This initiative seeks a “restructuring” of the South African economy to increase the performance in terms of labour […]

Emerging economy exchange rate misalignment.

Emerging economies are known for their sensitivity of exchange rate volatility.  Exchange rate volatility impacts economic growth in a large manner.  When the real exchange rate is under- or over valuated, it impacts a country’s economic performance directly.  For a country, such as South Africa to enhance its economic growth, the real exchange rate should […]

Global Economic Governance: A paradox

The global economy creates lots of opportunities in businesses. On the other hand interdependence exposes people to risks such as systemic risk. The spillover of financial crisis is evidence of economies’ dependency on each other. Financial crisis make us question the effectiveness of regulations or do we need more regulation? Is monitoring done effectively? If […]

Hitting a BRIC wall – A low growth trap

Emerging markets can be grouped into various categories such as the BRICS, which comprises of Brazil, Russia, India, China and South Africa. The BRICS have recently experienced slowing economic growth rates. The global financial crisis may form part of the reason why these economies are growing so slowly, but one also needs to look at […]

Expansionary monetary policy –YES or NO?

(Follow the clipboard link for more discussion) or go to If the Fed wishes to increase the money supply, it can do a combination of three strategies: Purchase securities on the open market, known as Open Market Operations Lower the Ferderal Discount Rate Lower Reserve Requirements Above combinations will impact the interest rates. If the […]

Greece debt crisis

Greece’s, debt crisis was built up by a long history of problems with its public debt. Many years of unrestrained spending, cheap lending and failure to implement financial reforms make the Greek government badly exposed when the global economic downturn struck. The recession made it difficult to sustain their borrowings since the tax revenues were […]