The ECB, the Bank of England, the Reserve Bank of Australia, the People’s Bank of China and the Bank of Korea raised policy rates. In order to contain financial market volatility arising from large liquidity flows, several central banks have tended to tighten monetary policy, even at relatively low current inflation rates, as in Thailand, Turkey, Saudi Arabia and Iceland.
The public pension and health systems, conquests of great social value of the past century, must continue to provide their benefits to future generations. A wisely regulated immigration policy can be a resource, as the experience of the most advanced economy demonstrates.