T T Mboweni: The global economy and central banking in Africa (Central Bank Articles and Speeches)

The global economy changed considerably in recent years with important consequences for central banking. During the last half of the previous century the world economy was characterised by a process of liberalisation, deregulation and eventually globalisation, i.e. a process through which an increasingly free flow of ideas, people, goods, services and capital leads to the integration of economies and societies. Globalisation brought increasing prosperity to the countries that became involved in it. The free flow of goods, capital and people boosted incomes and raised living standards in many parts of the world. In addition, new technological advances reduced transportation, telecommunication and computation costs. These developments did not only lead to greater operational effectiveness, but also increased the ease with which national markets could be integrated globally.