Alan Greenspan: "Low inflation is what creates long-term sustainable economic growth"
Abandoning the stable measuring unit assumption will result in 0% value destruction only in our real economy and create long-term sustainable economic growth in South Africa. It will stop our Chartered Accountants from unknowingly destroying up to a hundred billion Rand in constant item real value in our non-monetary economy year after year. We will still have 11.1% inflation in our cash or monetary economy.
"The benefits of price stability, on the other hand, can scarcely be overestimated, especially as these are, in principle, unlimited in duration and accrue year after year." Deutsche Bundesbank, 1996 Annual Report.
