Marcus: Policy can't solve crisis

2011-08-23 09:06

Johannesburg - The global economic crisis cannot be resolved by monetary policy alone, Reserve Bank governor Gill Marcus said on Tuesday.

"We are not in a normal cyclical downturn. The crisis cannot be resolved by monetary policy alone ... monetary policy can help to some extent," Marcus said at an American Chamber of Commerce meeting.

Marcus said the world economy came out of recession but did not overcome the crisis. 

  • Nasdaq7 - 2011-08-23 10:47

    Precisely the government needs to intervene in the economy to create opportunities for the economy to grow at a much faster pace to negate the negative effects of lower international economic growth. And that means going after projects and policies that can increase the economic growth rate of the economy and that can cut business costs. For example the US should cut its dependence upon imported oil by forcing the majority of US car owners to buy hybrid electric cars. Auto manufacturers need to be supported by US government funding to develop the electric car technology. Oil is their biggest import item. In other words speed up the transition to a more efficient economy. SA can do the same by speeding up certain technologies and projects that will provide higher economic growth. The government needs to act with funding, speed and action. In Japan all their damaged highways was rebuilt within a month of those earthquakes. Action. Speed. Intervention. Goals. Direction. Focus. Laser-like focus and speed.

  • mercutio9 - 2011-08-23 11:07

    And that is all that she said? Sad excuse for a news article.

  • Mielie Lady - 2011-08-23 12:25

    We know what won't are what we need

  • Vince York - 2011-08-23 12:54

    BRILLIANT flash of the light-bulb. When the leading financial advisors and others participating in the commercial fields have spelt it out quite clearly for decades, these people pursued other policies and agendas for too long and only NOW realize the hash that they have created. Marcus, there is worse to come - especially if you don't cut off the profligate purse strings of the politically biased youth propped via everything detrimental and unethical and non-business nanny dole out. But then again, YOUR advisors will cry out against this while they still bloat themselves at the top of the trough.

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