During the depths of the last recession, demand for our exports collapsed, and extraordinarily accommodative monetary policy was needed to boost domestic demand in order to support employment and income (Chart 5). The Bank’s timely and aggressive policy actions – combined with extraordinary fiscal stimulus – worked, with extra internal demand effectively substituting for weak external demand.
In making adjustments to our proposals based on comments and new information, we have been as transparent as possible. Going forward, we will seriously consider all comments on the proposals. For example, the proposals contain a number of specific questions soliciting comments in key areas. With these questions, the agencies are trying to highlight areas on which we would like additional information.