... South Africa’s capital account for the period since 1994 when capital controls on nonresidents were liberalized.5 The standard deviations are lowest for FDI and long-term capital (which consists ... the various components of South Africa’s capital account. It suggests that long-term capital, which consists primarily of bank loans, is the only form of capital that is negatively correlated ... inflation-targeting strategy or hurt growth performance. Eventually, the return on capital would need to decline, and the capital inflows would be reversed. The external current account would, therefore,...