An alternative pessimistic assessment is that the policy move was too little, too late, so that the failure to act more swiftly and more aggressively has set the stage for a resurgence in inflation that will threaten the expansion.
To this end, flexible labour and product markets are required, as well as long-term projects to enhance infrastructure and competitiveness and, above all, the promotion of innovation through investment in training and research. 3. A stable financial system  The financial crisis has illustrated the significance of systemic risks.